Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

CableVision has been approached by the City of Mirada to run its cable operations in 2023. After negotiating with key parties, CableVisio has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $47.25 per month. It will pay the city $110,000 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 $760,000 plus $8.75 per cable subscriber per month to broadcast the 25 channels. CableVision estimates that operating costs for billing, program news mailings, etc. will be $130,000 per month plus 7% of monthly revenue. CableVision has several questions about its monthly revenues, costs, and profits in 2023. REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT, ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.] Part A (8 tries; 8 points) 1. What is the estimated monthy contribution margin per cable subscriber for CableVision in 2023? 2. What are the estimated total monthly fixed costs for CableVision in 2023? Submit Answer Tries 0/8 Part B (8 tries; 8 points). 1. What is CableVision's estimated monthly operating income in 2023 if 16,000 residents subscribe? 2. How many monthly subscribers would be required for CableVision to break even in 2023? incorrect 3. Assuming a tax rate of 31%, how many monthly subscribers would be required for Cablevision to earn $188,000 per month in 2023? Submit Answer Some items were not submitted. Tries 0/8 Previous Tries Part C (4 tries; 4 points) Some of CableVision's managers are uncertain about their estimate of monthly fixed operating costs. Assuming that 19,000 residents. subscribe, how large can monthly fixed operating costs be for Cablevision to still earn $210,000 per month in 2023 (ignore taxes)? Submit Answer Tries 0/41

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate Accounting Reporting and Analysis

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

1st edition

1111822360, 978-1337116619, 1337116610, 978-1111822378, 1111822379, 978-1111822361

More Books

Students also viewed these Accounting questions

Question

a. What department offers the course?

Answered: 1 week ago