What is the new breakeven point if variable cost increases

Assignment Help Business Economics

Reference no: EM13853250

A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its monthly fees to $55.95 to cover add-on features such as movie streaming and music streaming. What is the new breakeven point if the variable cost increases to $30 per customer per month?

Reference no: EM13853250

Questions Cloud

The occupational safety and health administration : The Occupational Safety and Health Administration (OSHA) has determined that the probability of a worker dying from exposure to a hazardous chemical used in the production of fertilizer is 0.008. The cost of imposing a regulation that would ban the c..

Kinked demand curve is most likely to occur when other firms : A kinked demand curve is most likely to occur when other firms. The difference between the price firms would be willing to accept for their goods and the price they actually receive is called. Under conditions of perfect competition, maximum profit o..

Balanced federal budget tends to have neutral effect economy : The total payment of resource income in the economy is equal to the total value of the output. In the simple circular flow model, if planned I exceeds planned S, then. The level of total output and the price level can be affected by changes in consum..

Cost of printing music using an engraved plate technology : In 1796, Gottfried Christoph Härtel, a German music publisher, calculated the cost of printing music using an engraved plate technology and used these estimated cost functions to make production decisions. Graph the total cost, average total cost, av..

What is the new breakeven point if variable cost increases : A internet company has a fixed cost of $1,750,000 per month and a variable cost of $25 per month per subscriber. The company charges $45.95 per month to its internet customers. The company currently has 75,000 subscribers and proposes to raise its mo..

Explain why the standard deviation : Explain why the standard deviation would likely not be reliable measure of variability for a distribution of the data that includes at least one extreme outlier

What is price and quantity equilibrium in this market : Graph the supply and demand curves in this market. Be sure to put the quantity (Q) on the horizontal axis and the price (P) on the vertical axis. You may use quantities two (Q = 2) through eighteen (Q = 18) by units of one (1) for your graph. What is..

What is the equivalent value of series at beginning : Consider a series of end-of-period CFs spanning 2046-2053, which increase at a 1% rate each period. The amount of the first CF in the series is $92. The interest rate is 3%. What is the equivalent value of this series at the beginning of 2046?

Indifference curve for this consumer and indicate its slope : Suppose a consumer’s preferences over goods 1 and 2 are represented by the utility function u(x, y) = (x+ y)^3. Draw an indifference curve for this consumer and indicate its slope.

User Account

All Pages