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Case Kite Magazine The editor - in - chief of the press company where you work would like to launch the first specialized monthly magazine
Case Kite Magazine
The editorinchief of the press company where you work would like to launch the first specialized monthly magazine
about kitesurfing in New Zealand.
The company manager asks you, as a management controller, to find out what to expect.
It will be a magazine sold only by subscription.
Thanks to the communication carried out on social networks about this magazine project and a preorder system,
it is possible to estimate the number of subscriptions concluded at from the launch on
All subscriptions are paid at the beginning of January.
The annual subscription is for issues.
Its price is $ for one year.
Each month, you will have to pay a freelancer for writing articles $ which is paid to him one month behind schedule.
Other overhead costs are $ monthly, paid monthly.
Manufacturing and shipping costs are $ per magazine, paid in the month following the month they are generated.
You benefit from an exemption from corporate tax as a new business and VAT will not be taken into account.
You will start your new activity on and close your accounts on
What will your revenue be in
What will be:
your total annual variable costs,
your annual fixed charges,
and your result?
What is your total variable cost margin MCV and unit margin MCVu
What is the minimum number of subscriptions you will need to sell to break even?
If your cash flow is $ at startup your capital contribution
what will your bank balance be at the close of
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