Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Accounting Basics Expert

Accounting


Home >> Accounting Basics

CableVision has been approached by the City of Mirada to run its cable operations in 2016. After negotiating with key parties, CableVision has made the following agreements: It will offer Mirada residents a basic set of 25 cable television stations at a rate of $30.49 per month. CableVision will pay the city $100,000 per month plus $3.25 per cable subscriber per month to maintain the physical facilities. CableVision will actually pay another company an annual fixed fee of $700,000 plus $9.00 per cable subscriber per month to broadcast the 25 channels. CableVision estimates that operating costs for billing, program news mailings, etc. will be $120,000 per month plus 7% of monthly revenue. CableVision has several questions about its monthly revenues, costs, and profits in 2016.

REQUIRED [ROUND YOUR ANSWER TO PART A, QUESTION 1 TO THE NEAREST CENT; ROUND ALL OTHER ANSWERS TO THE NEAREST UNIT OR NEAREST DOLLAR.]

Part A

1. What is the estimated monthly contribution margin per cable subscriber for CableVision in 2016?

2. What are the estimated total monthly fixed costs for CableVision in 2016?

Part B

1. What is CableVision's estimated monthly operating income in 2016 if 18,000 residents subscribe?

2. How many monthly subscribers would be required for CableVision to break even in 2016?

3. How many monthly subscribers would be required for CableVision to earn $22,000 per month in 2016?

4. Assuming a tax rate of 30%, what must revenue be in order for CableVision to earn $22,000 per month in 2016?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91730942

Have any Question?


Related Questions in Accounting Basics

Question my choice is starbucksaccess each of the social

Question: My choice is Starbucks Access each of the social media pages for the brand you have selected (Facebook, Twitter, Instagram, etc.). Provide an assessment of the effectiveness of the social media sites: number of ...

Question - simple and compound interest computations - alan

Question - Simple and Compound Interest Computations - Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Alan w ...

Question - adams jackson invests 53400 at 8 annual interest

Question - Adams Jackson invests $53,400 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 years. At the end of the 8 years, Adams withdraws the accumulated amount of money. ...

Question - given are the data of coopers ltd for the year

Question - Given are the data of Coopers Ltd for the year ended 30th June 2018. Opening stock (1st July 2017) 5,000 units. Units produced 30,000 Units. Units sold 33,000 Units. Closing stock (30th June, 2018) 2,000 Units ...

Question - us steel issues a 2000000 bond at 10 for 8 years

Question - US Steel issues a $2,000,000 bond at 10% for 8 years. The market interest rate is 9%. Be sure to use the time value of money tables, not the formulas; and round your answers to the nearest whole dollars. Quest ...

Question - for the year ended may 31 2015 nike inc

Question - For the year ended May 31, 2015, NIKE, Inc. financial statements included the following data: NIKE, Inc. Selected financial data Revenues 30,601 Cost of sales 16,534 Gross profit 14,067 Total selling and admin ...

Question - umatilla bank and trust is considering giving

Question - Umatilla Bank and Trust is considering giving Blossom Company a loan. Before doing so, it decides that further discussions with Blossom Company's accountant may be desirable. One area of particular concern is ...

Question - 2018 pretax accounting income 400000all fixed

Question - 2018 Pretax Accounting Income: $400,000 All Fixed Assets Purchased Prior to January 1, 2018 were Fully Depreciated at 12/31/17 Fixed Assets purchased on January 1, 2018 for $100,000 and have Estimated Life of ...

Question the turkish and japanese economies face different

Question: The Turkish and Japanese economies face different challenges over the next decade. The assignment requires you to choose one of the countries and identify the key risks in terms of the economic, financial, poli ...

Question - at the beginning of 2016 pioneer products

Question - At the beginning of 2016, Pioneer Products' ownership interest in the common stock of LLB Co. increased to the point that it became appropriate to begin using the equity method of accounting for the investment ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved