2. Conroy Media is a fitness platform, with more than 1 million subscribers on its platform. The company reported an operating loss of $25 million in the most recent year, but that was after expensing $36 million spent on acquiring subscribers during the year. Assume that a subscriber stays on the platform for three years, and that you have the subscriber acquisition costs for the most recent years below: Year Current -1 -2 -3 Subscriber acquisition cost (in millions USD) $36 $27 $21 $14 Estimate the corrected pre-tax operating income for this company, with subscriber acquisitions being treated as the equivalent of capital expenditures.
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- There is a company running a subscription-based business. A marketing manager of this company found that a customer of the company is expected to, on average, generate $200 of gross contribution per year and the retention rate of the customer is, on average, 85% per year. With 5% of annual discount factor and $500 of acquisition costs per customer, a customer's LTV for the entire life-time is about $230 $350 $500 $450 $850Juniper Design Ltd. of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $430,000 on sales of $1,500,000. The company's average operating assets for the year were $1,700,000 and its minimum required rate of return was 10%. Required: Compute the company's residual income for the year. Residual income < Prev 2 of 13 Next 近ESPN and Fox Sports spent $4,200,000 on a promotional campaign for ESPN.com website that offeredtwo 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): 14monthsRevenue per month per customer subscription : $10.00Variable cost per month per customer subscription : $5.00Determine 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 unitcontribution margin.
- Assume RajanManufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order.…Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 VestsSales revenue $20 $20 000Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000Contribution margin $ 7 $ 7 000Fixed costs (rent, salaries, etc.) 4 000Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be…Last year Minden Company introduced a new product and sold 38,900 units of it at a price of 598 per unit. The product's variable expenses are $68 per unit and its fixed expenses are $839,400 per year. Required: 1. What was this product's net operating income (loss) last year?
- Last year Minden Company Introduced a new product and sold 25,100 units of It at a price of $95 per unit. The product's varlable expenses are $65 per unit and its fixed expenses are $835,500 per year. Required: 1. What was this product's net operating Income (loss) last year? 2 What Is the product's break-even polnt in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates It can Increase annual sales of this product by 5.000 units for each $2 reduction In Its selling price. If the company will only consider price reductions in Increments of $2 (e.g. $68. $6, etc.). what is the maximum annual profit that It can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even polnt In unit sales and In dollar sales using the selling price that you determined In requirement 3? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required…Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special…Assume Rajan Manufacturing Ltd makes sports vest for local soccer, baseball, basketball, and other sports teams. Rajan, the owner, purchases the vests and prints graphics on the vests for each team. The graphics were designed several years ago, so design costs are no longer incurred. On average, Rajan sells 1,000 vests each month. Typical monthly financial data is shown below: Per Unit Total Monthly Data at 1,000 Vests Sales revenue $20 $20 000 Variable costs: Direct materials $8 $8 000 Direct labour 2 2 000 Manufacturing overhead 3 13 3 000 13 000 Contribution margin $ 7 $ 7 000 Fixed costs (rent, salaries, etc.) 4 000 Profit $ 3 000 The monthly information provided relates to the company’s routine monthly operations. A representative of the local university recently approached Rajan to ask about a one-time special order. The university will be hosting a state-wide soccer event and is willing to pay Rajan’s Manufacturing $17 per shirt to make 200 custom vests for…
- Last year Minden Company Introduced a new product and sold 25,100 units of It at a price of $95 per unit. The product's varlable expenses are $65 per unit and its fixed expenses are $835,500 per year. Required: 1. What was this product's net operating Income (loss) last year? 2 What is the product's break-even point in unit sales and dollar sales? 3. Assume the company has conducted a marketing study that estimates It can Increase annual sales of this product by 5.000 units for each $2 reduction In Its selling price. If the company will only consider price reductions in increments of $2 (e.g. $68. $6, etc.). what is the maximum annual profit that It can earn on this product? What sales volume and selling price per unit generate the maximum profit? 4. What would be the break-even polnt In unit sales and In dollar sales using the selling price that you determined In requirement 3? Complete this question by entering your answvers in the tabs below. Required 1 Required 2 Required 3…Last year company A introduced a new product and sold 25,900 units at $97.00 per unit. The product variable expense $67.00 per unit with a fixed price expense of $835,500 per year. a. What is the product's net income or loss last year? b. What is the product break-even point in unit sales and dollar sales? c. Assume the company has conducted a market study that estimates it can increase sales by 5,000 units for each $2.00 reduction in its selling price. If the company would only consider increments of $2.00(e.g. $68,$66, etc) What is the maximum annual profit that can be earned on this product? What sales volume and selling price per unit generate the maximum profit? d. What would be the break-even point in unit sales and dollar sales using the selling price that was determined in the required letter c above? Thank you,Assume that RAS AMBA Hotel has annual fixed costs applicable to its operation of $182,500 for its 60 rooms motel,daily room rent income of $ 150,and variable costs of $ 50 for each room rented.It operates 365 days a year.Required :- 1. Operating income on rooms wii be generated ,if the motel is fully occupied throughout an entire year and if the motel is half full during a year? 2.what is the breakeven point in number of rooms rented assuming that the motel is fully occupied throughout the year.