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Star Stream is a subscription - based video streaming service. Subscribers pay $ 1 2 0 per year for the service. Star Stream licenses and
Star Stream is a subscriptionbased video streaming service. Subscribers pay $ per year for the service. Star Stream licenses and develops content for its subscribers. In addition, Star Stream leases servers to hold this content. These costs are not variable to the number of subscribers, but must be incurred regardless of the subscriber base. In addition, Star Stream compensates telecommunication companies for bandwidth so that Star Stream customers receive fast streaming services. These costs are variable to the number of subscribers. These and other costs are as follows: Enter your answers in whole dollars.
Server lease costs per year
Content costs per year
Fixed operating costs per year
$
Bandwidth costs per subscriber per year
Variable operating costs per subscriber per year
a Determine the breakeven number of subscribers.
subscribers
b Assume Star Stream planned to increase available programming and thus increase the annual content costs to $ What impact would this change have on the breakeven number of subscribers?
Breakeven number of subscribers will to subscribers.
Server lease costs per year
Content costs per year
Fixed operating costs per year
Bandwidth costs per subscriber per year
Variable operating costs per subscriber per year
a Determine the breakeven number of subscribers.
subscribers
b Assume Star $ tream planned to increase available programming and thus increase the annual content costs to $ What impact would this change have on the breakeven number of subscribers? Breakeven number of subscribers will
$
a Determine the breakeven number of subscribers. subscribers
b Assume Star $ tream planned to incr costs to $ What impact Breakeven number of subscribers will to subscribers.
c Assume the same content cost scenario as in b How much would the annual subscription need to change in order to maintain the same breakeven as in a
The annual subscription need to from $ to $ in order to maintain the same breakeven as in a
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