Monthly Fee per Actual Number Advertising Revenues $ 415,972 Month/Year of Subscribers Subscriber $15.50 June 2015 29,745 55,223 December 2015 867,246 892,134 20.50 June 2016 59,641 20.50 December 2016 1,517,950 2,976,538 87,674 147,921 20.50 June 2017 20.50 The following decisions were made from June through October 2017: a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number of subscribers for this monthly fee is shown in the following table. b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50. c. July 2017: Offered e-mail service to subscribers and upgraded other online services. d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2017 data in the following table. e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward. Results for July-September 2017 are as follows: Budgeted Number of Subscribers Monthly Fee per Actual Number Month/Year July 2017 August 2017 September 2017 of Subscribers Subscriber 145,000 155,000 165,000 129,250 142,726 145,643 $25.50 25.50 25.50 1. Classify each of the decisions (a-e) as a planning or a control decision. 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at PostNews.com.
Monthly Fee per Actual Number Advertising Revenues $ 415,972 Month/Year of Subscribers Subscriber $15.50 June 2015 29,745 55,223 December 2015 867,246 892,134 20.50 June 2016 59,641 20.50 December 2016 1,517,950 2,976,538 87,674 147,921 20.50 June 2017 20.50 The following decisions were made from June through October 2017: a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number of subscribers for this monthly fee is shown in the following table. b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50. c. July 2017: Offered e-mail service to subscribers and upgraded other online services. d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2017 data in the following table. e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward. Results for July-September 2017 are as follows: Budgeted Number of Subscribers Monthly Fee per Actual Number Month/Year July 2017 August 2017 September 2017 of Subscribers Subscriber 145,000 155,000 165,000 129,250 142,726 145,643 $25.50 25.50 25.50 1. Classify each of the decisions (a-e) as a planning or a control decision. 2. Give two examples of other planning decisions and two examples of other control decisions that may be made at PostNews.com.
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 94PSA
Related questions
Question
PostNews.com offers its subscribers several
services, such as an annotated TV guide and local-area information on weather, restaurants, and movie
theaters. Its main revenue sources are fees for banner advertisements and fees from subscribers. Recent
data are as pictures
Transcribed Image Text:Monthly Fee per
Actual Number
Advertising Revenues
$ 415,972
Month/Year
of Subscribers
Subscriber
$15.50
June 2015
29,745
55,223
December 2015
867,246
892,134
20.50
June 2016
59,641
20.50
December 2016
1,517,950
2,976,538
87,674
147,921
20.50
June 2017
20.50
The following decisions were made from June through October 2017:
a. June 2017: Raised subscription fee to $25.50 per month from July 2017 onward. The budgeted number
of subscribers for this monthly fee is shown in the following table.
b. June 2017: Informed existing subscribers that from July onward, monthly fee would be $25.50.
c. July 2017: Offered e-mail service to subscribers and upgraded other online services.
d. October 2017: Dismissed the vice president of marketing after significant slowdown in subscribers
and subscription revenues, based on July through September 2017 data in the following table.
e. October 2017: Reduced subscription fee to $22.50 per month from November 2017 onward.
Results for July-September 2017 are as follows:
Budgeted Number
of Subscribers
Monthly Fee per
Actual Number
Month/Year
July 2017
August 2017
September 2017
of Subscribers
Subscriber
145,000
155,000
165,000
129,250
142,726
145,643
$25.50
25.50
25.50
1. Classify each of the decisions (a-e) as a planning or a control decision.
2. Give two examples of other planning decisions and two examples of other control decisions that may
be made at PostNews.com.
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