Reference no: EM132629215

Question 1: Homestead Telephone was formed in the 1940s to bring telephone services to remote areas of the U.S. Midwest. The early equipment was quite primitive by today's standards. All calls were handled manually by operator, and all customers were on party lines. By the 1970s, however, all customers were on private lines, and mechanical switching devices handled routine local and long-distance calls. Operators remained available for directory assistance, credit card calls, and emergencies. In the 1990s Homestead Telephone added local Internet connections as an optional service to its regular customers. It also established an optional cellular service, identified as the Home Ranger. According to Hartgraves and Morse (2018), contribution margin is the difference between total revenues and total variable costs that goes toward covering fixed costs and providing a profit is emphasized. Using a unit-level analysis, develop a graph with two lines, representing Homestead Telephone's cost structure in the 1940s. On the vertical axis is the total revenue and total cost and on the horizontal axis is the total volume.