Question: Netflix Inc. offers three subscription plans: Basic, Standard, and Premium. The monthly subscription fees and variable costs per subscriber for each plan are as follows:

Netflix Inc. offers three subscription plans: Basic, Standard, and Premium. The monthly subscription fees and variable costs per subscriber for each plan are as follows:

Subscription Plan

Monthly Fee ($)

Variable Cost per Subscriber ($)

Basic

$10

$4

Standard

$15

$6

Premium

$20

$8

If the sales mix is 40% Basic, 30% Standard, and 30% Premium, calculate the weighted average monthly fee and contribution margin per subscriber.

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