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Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted to members who a monthly subscription
Media outlets often have websites that provide in-depth coverage of news and events. Portions of these websites are restricted to members who a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to introduce viewers to the website. Assume that during a recent fiscal year, one outlet spent $3,633,840 on a promotional campaign for its website that offered two free months of service for new subscribers. In addition, assume the following information: (including the two free months) Revenue per month per customer subscription 21 months Variable cost per month per customer subscription cost of the promotional campaign as a fixed cost, and ( 2) treat the revenue less variable cost per account for the subscription period as the unit contribution margin. accounts
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