Fusion Enterprises offers a basic service with revenue of $100 per unit, variable costs of $50 per unit, and total fixed costs are $600,000. Fusion intends to offer their customers a new additional service that complements their present service. Fusion’s business model is similar to cable television in that it begins with a basic service and offers add-ons for an additional price. The new service being introduced will use existing resources; however, some additional new costs will be incurred. The additional service will cost the customer an additional $60 per unit, Fusion will incur additional variable costs of $40 per unit, and additional fixed costs of $48,000. Not every customer is expected to subscribe to the new service. Fusion expects that 80% of their customers will stay with the basic service while the remaining 20% of their customers are expected to add-on and also subscribe to the additional service. Thus, Fusion expects 8 out of 10 customers to stay with the basic service and 2 out of 10 to add the new service. For Fusion to break-even after introducing the new additional service, how many customers will need to subscribe to the basic service and how many customers will need to include the additional service in their subscription? (note: If rounding is required, round to the nearest whole unit.)

Answers: 

Number of Basic Subscribers ______________________

Number of Subscribers Including Additional Service___________