A internet company has a fixed cost of 1750000 per month, Ask an Expert

Economics

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?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91521381

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