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Netflix Inc. offers three subscription plans: Basic, Standard, and Premium. The monthly subscription fees and variable costs per subscriber for each plan are as follows:
Netflix Inc. offers three subscription plans: Basic, Standard, and Premium. The monthly subscription fees and variable costs per subscriber for each plan are as follows:
Subscription Plan | Monthly Fee ($) | Variable Cost per Subscriber ($) |
Basic | $10 | $4 |
Standard | $15 | $6 |
Premium | $20 | $8 |
If the sales mix is 40% Basic, 30% Standard, and 30% Premium, calculate the weighted average monthly fee and contribution margin per subscriber.
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