Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ces Required information [The following information applies to the questions displayed below.] Annie's expects fewer people to enroll in the fan club if the

 image text in transcribed 
 
image text in transcribed
 
image text in transcribed
 
image text in transcribed
 
image text in transcribed
 
image text in transcribed
 
image text in transcribed
 
image text in transcribed

ces Required information [The following information applies to the questions displayed below.] Annie's expects fewer people to enroll in the fan club if the monthly fee is $12 instead of $10. It refers to this decline in enrollment as the attrition percentage. For example, if 100 people would enroll in the fan club at a monthly fee of $10 and the attrition percentage is 5%, it means that 95 people would enroll in the fan club at the higher price of $12 per month. Similarly, if 500 people would enroll in the fan club at a monthly fee of $10 and the attrition percentage is 5%, it means that 475 people (-500 [100%-5% )) would enroll in the fan club at the higher price of $12 per month. Review the data visualization below and answer the following questions: Profit Comparison if 100 or 500 Members Join at $10 $12.000 $10,000 1.000 14.000 $4.000 $2.000 (2,000) ($4.000) (4.000) ($4,000) (30,000) 1512,000) 50% 12% Attrition Percentage Enrollment 100 Members 500 Members +ableau) Definitions: Attrition percentage is the percent decline in enrollment if the fee increases from $10 per month to $12 per month. Incremental profit is the additional profit earned at a $12 monthly enrollment fee instead of a $10 fee. 6-a. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-b. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-c. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-d. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-e. Which of the following statements is true at an attrition percentage of 5%? 6-f. In both scenarios (100 members or 500 members), what is the highest attrition percentage that still provides an incremental profit greater than zero for the $12 pricing scenario? Complete this question by entering your answers in the tabs below. Required 6a Required 6b Required 6c Required 6d Required de Required of In both scenarios (100 members or 500 members), what is the highest attrition percentage that still provides an incremental profit greater then zero for the $12 pricing scenario? Highest attrition percentage 6-8. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-b. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-c. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-d. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-e. Which of the following statements is true at an attrition percentage of 5%? 6-1. In both scenarios (100 members or 500 members), what is the highest attrition percentage that still provides an incremental profit greater than zero for the $12 pricing scenario? Complete this question by entering your answers in the tabs below. Required 6a 1 Required 65 Required 6c Required 6d Required 6e Required 6f Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? incremental profit per year Required 6b > tes 6-a. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-b. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-c. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-d. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-e. Which of the following statements is true at an attrition percentage of 5% ? 6-f. In both scenarios (100 members or 500 members), what is the highest attrition percentage that still provides an incremental profit greater than zero for the $12 pricing scenario? Complete this question by entering your answers in the tabs below. Required 6a Required 6b Required 6c Required 6d Required 6e Required 6f Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? Incremental profit per year Complete this question by entering your answers in the tabs below. Required 6a Required 6b Required 6c Required 6d Required 6e Required 6f Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? Note: Round your answer to the nearest dollar. Incremental profit per year Show less A Complete this question by entering your answers in the tabs below. Required 6a Required 6b Required 6c Required 6d Required 6e Required 6f Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? Incremental profit per year 6-a. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-b. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 0%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-c. Assume (1) 100 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-d. Assume (1) 500 people would enroll in the fan club at a price of $10 per month, and (2) the attrition percentage at the higher price of $12 per month is 5%. What incremental profit per year will the $12 pricing scenario provide relative to the $10 scenario? 6-e. Which of the following statements is true at an attrition percentage of 5% ? 6-f. In both scenarios (100 members or 500 members), what is the highest attrition percentage that still provides an incremental profit greater than zero for the $12 pricing scenario? Complete this question by entering your answers in the tabs below. Required 6a Required 6b Required 6c Required 6d Required 6e Required 6f Which of the following statements is true at an attrition percentage of 5% ? OAs the number of customers enrolled increases from 100 to 500, the incremental profit earned in the $12 per month scenario increases. As the number of customers enrolled increases from 100 to 500, the incremental profit earned in the $12 per month scenario decreases As the number of customers enrolled increases from 100 to 500, the incremental profit earned in the $12 per month holds constant.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To solve this problem we need to calculate the incremental profit generated when the club increases the monthly fee from 10 to 12 considering differen... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Earnings Quality

Authors: Andrew P.C.

1st Edition

1521507724, 978-1521507728

More Books

Students also viewed these Finance questions

Question

What is a pecking order? AppendixLO1

Answered: 1 week ago