Fin63

Posted on February 20, 2017

Finance Assignment Help 63

Part A(6 tries 8 points)
 
1-what is the estimated monthly contribution margin per cable subscriber for cable vision in 2016?
 
2-what are the estimated total monthly fixed costs for cable vision in 2016?
 

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Part B(8 tries 8 points)
 
1-what is cable vision’s estimated monthly operating income in 2016,if 17000 residents subscribe?
 
2-how many monthly subscribers would be required for cable vision to break even in 2016?
 
3-how many monthly subscribers would be required for cable vision to earn $23000 per month in 2016?
 
4-assuming a tax rate of 32% what must revenue be in order for cable vision to earn $23000 per month in 2016?
 
Part C(4 tries 4 points)
 
1-Some of cable vision’s managers are uncertain about their estimate of monthly fixed operating costs, assuming that 19000 residents subscribe, how large can monthly fixed operating costs be for cable vision to still earn $23000 per month in 2016(ignore taxes)

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