Question
ANZflix, a media-services provider, charges subscribers $13.49 per month. To attract more customers, the Management and Product Planning team spents an estimated cost at $52,000
ANZflix, a media-services provider, charges subscribers $13.49 per month. To attract more customers, the Management and Product Planning team spents an estimated cost at $52,000 to produce and deploy products across all user interfaces. Also, the Software Engineering team maintains all systems and infrastructure to ensure that members can continue to sign up and watch ANZflix. This maintainance costs ANZflix $56,000 per month. ANZflix uses a server in Taiwan to deliver streaming videos to its subscribers and the facility runs at a cost of $135 per month. Another cost incurred by ANZflix includes $0.02 per GB (GigaByte) of bandwidth to deliver content. In addition, the external studios making the content are paid $0.15 every time for a subscriber watches one program. A typical ANZflix subscriber will watch 30 programs, streaming 65GB of film and TV shows per month. Each subscriber will also cost ANZflix $1.14 per month to maintain their membership. (a) (6 marks) Using the above information, calculate: (i) The break-even number of subscribers per month for ANZflix. (ii) The monthly revenue at break-even.
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