Case Kite Magazine

The editor$-$in$-$chief 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 pre$-$order system,

it is possible to estimate the number of subscriptions concluded at $800$ from the launch on $1/1/2024.$

All subscriptions are paid at the beginning of January.

The annual subscription is for $12$ issues.

Its price is $$50$ for one year.

Each month, you will have to pay a freelancer for writing articles $$1000$ which is paid to him one month behind schedule.

Other overhead costs are $$500$ monthly, paid monthly.

Manufacturing and shipping costs are $$2$ 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 $1/1/24$ and close your accounts on $12/31/24.$

What will your revenue be in $2024?$

What will be:

$-$ your total annual variable costs,

$-$ your annual fixed charges,

$-$ and your $2024$ 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 $$2000$ at start$-$up $($your capital contribution$)$

what will your bank balance be at the close of $12/31/24?$