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CableVision has been approached by the City of Mirada to run its cable operations in 2023. After negotiating with key parties, CableVision has made

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CableVision has been approached by the City of Mirada to run its cable operations in 2023. After negotiating with key parties, CableVision has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $45.00 per month. It will pay the city $100,000 per month plus $4.50 per cable subscriber per month to maintain the physical facilities. It will pay another company an annual fixed fee of $790,000 plus $8.00 per cable subscriber per month to broadcast the 25 channels. CableVision estimates that operating costs for billing, program news mailings, etc. will be $110,000 per month plus 9% of monthly revenue. CableVision has several questions about its monthly revenues, costs, and profits in 2023.

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