ESPN and Fox Sports spent $4,200,000 on a promotional campaign for ESPN.com website that offered two free months of service for new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months): 14 months Revenue per month per customer subscription : $10.00 Variable cost per month per customer subscription : $5.00 Determine the number of new customer accounts to break even the cost of promotional campaign. Treat the campaign cost as fixed and revenue less variable cost per account period as the unit contribution margin.

Q: MidCoast Airlines provides charter airplane services. In October, when the company is operating at…

A: Introduction: The contribution margin is the difference between a product's price and any associated…

Q: There is a company running a subscription-based business. A marketing manager of this company found…

A: The customer's LTV: The customer's Life Time Value or LTV is a measure of the value of the projected…

Q: Stubs-R-Us is a local event ticket broker. Last year, the company sold 760,000 tickets with an…

A:

Q: Wadena Search and Rescue estimates the monthly cost of responding to emergency calls to be $90,000,…

A: When some cost is showing combined effect of variable and fixed cost i.e. it is semi variable and…

Q: The Cullumber Acres Inn is trying to determine its break-even point during its off-peak season. The…

A: Break-even point in number of rented rooms = Total fixed cost / Contribution margin per room…

Q: National Co. is convenience store  that is currently open only Monday to Saturday. National is…

A: Lets start with basics. We need to calculate the incremental sales that would be necessary on Sunday…

Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…

A: preparation of traditional format income statement and contribution format income statement for…

Q: Cullumber Monograms sells stadium blankets that have been monogrammed with high school and…

A: Contribution Margin Ratio     Selling Price per unit ($) 40   Variable Cost(VC) per unit (40% of…

Q: JVA store serves an approximate 1,200 customers annually. These are the breakdown of its customers:…

A: Annual market size refers to the amount of total revenue generated by an entity in the market. It is…

Q: The Ivanhoe Acres Inn is trying to determine its break-even point during its off-peak season. The…

A: A break-even point is a situation in which the company's total cost is equal to total revenue and…

Q: Stan Inc. currently asks its credit customers to pay by the end of the month after the month of…

A: The net cost or benefit is determined after considering the additional cost on the policy and…

Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…

A: Break Even Point:                 Break Even Point is defined as the level where there is no profit…

Q: additional weekly sales would be necessary

A: Additional sales required = (Incremental fixed costs + Additional operating profit…

Q: Thorne Estates Limited advertises and sells residential property on behalf of its customers. The…

A: A Cash Budget depicts the cash receipts and cash payments for the period. It helps the company to…

Q: Marwick’s Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail…

A: 1. Under Traditional method, the cost of goods sold is deducted from sales revenue to arrive at the…

Q: A newly opened food chain estimates to serve 200 customers a day, with an average consumption or…

A: Number of Customers 200 per Day Number of Customers (200*25) 5000 per Month Fixed Cost…

Q: 1. Compute the break-even point in meals. 2. Compute the break-even volume in dollars. 3. Compute…

A: 1.  Compute the break-even point in meals. Break-even point in meals = Fixed costs / Contribution…

Q: The Soma Inn is trying to determine its break-even point. The inn has 75 rooms that are rented at…

A: Answer 1) Calculation of Break-even point in rooms Break-even point in rooms = Total Fixed cost per…

Q: Olsen Auto Supply typically earns a contribution marginratio of 40 percent. The store manager…

A:

Q: Blike Co. is a convenience store that is currently open only Monday through Saturday. It considers…

A: Answer) Calculation of Sales on Sunday to earn desired income Weekly Sales on Sunday = (Additional…

Q: bicycle manufacturer has sold 450 pieces of its special mountain bikes this month. Based on sales…

A: Ans i) Calculation of break even quantity :: The price of the bike is $120 .. variable cost is 35%…

Q: Sunland, Inc., sells two types of water pitchers, plastic and glass. Plastic pitchers cost the…

A: The question is based on the concept of Cost Accounting.

Q: Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an…

A: Commission revenue is part of revenue which is earned as a fee charged by the agent or broker to…

Q: The campus store at a large Midwestern university sells writing tablets to students, faculty, and…

A: a.

Q: Marwick's Pianos, Inc., purchases pianos from a large manufacturer and sells them at the retail…

A: Under Traditional method, the cost of goods sold is deducted from sales revenue to arrive at the…

Q: arwick’s Pianos, Inc., purchases pianos from a large manufacturer for an average cost of $1,482 per…

A: Financial Statement - It is formal records of the financial activities of particular period and…

Q: Alliance, Inc. sells gas lamps to consumers through retail outlets. Total industry sales for…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. The inn…

A: Introduction:- The breakeven point for trade or investment is calculated by comparing an asset's…

Q: A company that manufactures air-operated drain valve assemblies currently has $85,000 available to…

A: Computation:

Q: Marwick’s Pianos, Incorporated, purchases pianos from a large manufacturer for an average cost of…

A: Under contribution margin approach the costs are divided into variable and fixed costs .…

Q: Stubs-R-Us is a local event ticket broker. Last year, the company sold 900,000 tickets with an…

A: The calculation is attached below.

Q: Raveen Products sells camping equipment. One of the company’s products, a camp lantern, sells for…

A: Under Contribution Margin Income statement, first variable costs are deducted from sales revenue to…

Q: Reisen Travel offers helicopter service from suburban towns to John F. Kennedy International Airport…

A: Total cost at hightest activity = 2,000*$350 = $600,000 Total cost at lowest activity = 1,000*$350 =…

Q: Jimmy is proposing to begin manufacturing smart phone covers which sell for $25 each. Jimmy…

A: Income statement shows operating income or loss during an accounting year. When revenue in case of…

Q: Classical Glasses operates a kiosk at the local mall, selling s unglasses for $30 each. Classical…

A: Compute the sales levels at which Classical Glasses would prefer to pay a fixed amount of monthly…

Q: A company that manufactures air-operated drain valve assemblies currently has $110,000 available to…

A: Uniform annual amount: The spending amount remains same over next couple of periods called uniform…

Q: Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new…

A: Cost today = $11400 per unit NPV of Profit after one period =125* ( -11400 + 13000/1.019) =…

Q: Zoey Enterprises manufactures solar engines for helicopters. Given the fuel savings available, new…

A: Net present value  The variance of the cash inflows (PV) and cash outflows (PV) over time.

Q: Chaps & Saddles, a retailer of tack and Western apparel, earns an average contribution margin of 30…

A:

Q: Beauty Salon serves an approximate 1,200 customers annually. These are the breakdown of its…

A: Budget means the expected value of future. Budget is not affected by the actual value as it is…

Q: AB Company is contemplating to temporary stop operating for the next 4 months since demand declines…

A:

Q: Cash & Credit Supermarket Inc. currently asks its credit customers to pay by the end of the month…

A: Net cost/benefit Analysis: It analyses the benefits of a decision and the costs associated with the…

Q: How can I resolve this problem? Marwick’s Pianos, Inc., purchases pianos from a large manufacturer…

A: The traditional income statement is simply deducted all the expenses from the revenue, on the other…

Q: Chaffee Corporation staffs a helpline to answer questions from customers. The costs of operating the…

A: The answer for the multiple choice question and relevant working are presented hereunder :

Q: Paul Company is contemplating to close the operations of the club Due to heavy rains brought by La…

A: The shutdown point seems to be the stage where a merchant believes that there really is no advantage…