• StreamFast Media, an entertainment streaming service, wants to optimize its subscriber-related costs.
• Data:
  • January: Total Costs: $400,000, Subscribers: 100,000
  • December: Total Costs: $550,000, Subscribers: 150,000
• Required:
  • Use the High-Low Method to determine the variable cost per subscriber and the fixed costs.
  • Develop a cost equation.
  • Predict the costs for 200,000 subscribers.
  • Analyze the implications of subscriber growth on total costs.