Question
Netflix Inc. operates two distinct product lines, streaming services, and merchandise sales. The streaming service division reports total fixed costs of $1,000,000 and variable costs
Netflix Inc. operates two distinct product lines, streaming services, and merchandise sales. The streaming service division reports total fixed costs of $1,000,000 and variable costs per subscriber of $20. Conversely, the merchandise sales division has total fixed costs of $500,000 and variable costs per unit of $10. Conduct a comparative study analyzing the breakeven points, contribution margins, and profitability of each division. Explore the strategic implications of these findings for Netflix Inc.'s future growth and investment decisions.
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