Suppose that News Corp., which controls the United States' largest satellite-to-TV broadcaster, is contemplating launching a Spaceway satellite that could provide high-speed Internet service. Prior to launching the Spaceway satellite, suppose that News Corp. used least squares to estimate the regression line of demand for satellite Internet services.

The best-fitting results indicate that demand is Q^d_sat = 152.5 .8P_sat+ 1.2P_DSL + .5P_cable(in thousands), where P_sat is the price of satellite Internet service, P_DSL is the price of DSL Internet service, and P_cable is the price of high-speed cable Internet service.

The price of DSL, P_DSL, is $25 per month and the monthly price of high-speed cable Internet, P_cable is $50. Furthermore, News Corp. has identified that its monthly revenues need to be at least $15 million to cover its monthly costs.

1. If News Corp. set its monthly subscription price for satellite Internet service at $55, would its revenue be sufficiently high to cover its cost?
2. Is it possible for News Corp. to cover its cost given the current demand function? Justify your answer.