Reference no: EM133494745
Problem
A company named Filo is offering instant doubt-solving to students from classes 9 to 12 and also for government job preparation. The company revenue model is only a subscription-based model and they are offering unlimited doubts-asking features if a student buys any of their subscriptions.
Subscription pricing on the filo:
Filo is offering 1-day, 1-month, 3 months, 6 months and 12 months subscriptions
1. 1-day subscription cost = 99 Indian Rupees(1.20 United States Dollar)
2. 1-month subscription cost= 1499 Indian Rupees(18.21 United States Dollar)
3. 3 month subscription cost= 4499 Indian Rupees(54.66 United States Dollar)
4. 6 month subscription cost= 7999 Indian Rupees(97.18 United States Dollar)
5. 12 month subscription cost= 14999 Indian Rupees(182.22 United States Dollar)
On all the above filo subscriptions students can ask unlimited doubts from the tutors, there is no limit to asking the questions on the filo platform by taking a subscription.
The remuneration for the tutors on filo is as follows:
1. For 11th &12th standard (Physics, Chemistry, Biology & Mathematics): 140 Indian Rupees/hr (1.70 United States Dollars/hr)
2. For 9th & 10th (All topics/subjects): 110 Indian Rupees/hr (1.34 United States Dollars/hr)
3. For government job exams (All topics): 110 Indian Rupees/hr (1.34 United States Dollars/hr)
Task
If the students can ask unlimited doubts after buying any subscription and also paying a good amount of money to the tutors, then how will the Filo company earns money and become profitable?
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How will the filo company earns money and become profitable
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