Question: Please help to correct the wrong answer CableVision has been approached by the City of Mirada to run its cable operations in 2019. After negotiating


Please help to correct the wrong answer
CableVision has been approached by the City of Mirada to run its cable operations in 2019. After negotiating with key parties, CableVision has made the following agreements It will offer Mirada residents a basic set of 25 cable television stations at a rate of $31.99 per month It will pay the city $1,400,000 per year plus $3.25 per cable subscriber per month to maintain the physical facilities It will actually pay another company a monthly fixed fee of S70,000 plus $8.75 per cable subscriber per month to broadcast the 25 channels CableVision estimates that operating costs for billing, program news mailings, etc. will be $120,000 per month plus 8% of monthly revenue CableVision has several questions about its monthly revenues, costs, and profits in 2019 (8 tries; & points) Part A . What is the estimated morthy contribution margin per cable subscriber for CableVision in 20197 $17.43 2. What are the estimated total manthly fixed costs for Cablevsion in 2019? $306,667 ou are correct. Previous Tries r receipt no. is 152-9523 Your answers are correct but ust to make sure that there are no rounding issues use si7 4 costs in Parts B and C. for the estimated contribution marg n rs.bscriber and S3 5 66forth estimated mot fixed Part B (8 tries: 8 01nts) 1. Wht is CableVision's estimated monthly operating income in 2019 if 17,000 residents subscribe? 43 IS INCORRECT $-10357 2. How many monthly subscribers would be required for CableVision to break even in 2019? $17593 4 15 CORRECT 3. llow many monthly subscribers would be required for CableVision to earn $25,000 per month in 2019? 19085 5 IS CORRECT 4. Assuming a tax rate of 33%, ho many monthly subscribers woud be requirec for CableVis on to eam26,000 per month in 2019? #6 IS INCORRECT $19819.67 Submit Anawer correct. Tries 3 PeTries Part C(4 tries:4points) Some of CableVision's managers are uncertain about their estimate of monthly fixed pe al g COstS Assuming that 22 000 $26,000 per month in 2019 (ignore taxes)? $357178 The cuestion is asking how large montnly operating fixed costs can be, not monchly total fixed costs. sidents subscribe, how large can monthly fixed operating costs be for Cable ision to still earn Subrmil Answn ncorrect. Tries 2/4 Prey ous Tries
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