Question: WebNews.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

WebNews.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 follows:

Advertising Revenues $ 415,972 867,246 892,134 1,517,950 2,976,538 Actual Number of Subscribers

The following decisions were made from June through October 2011:a. June 2011: Raised subscription fee to $25.50 per month from July 2011 onward. The budgeted number of subscribers for this monthly fee is shown in the following table.b. June 2011: Informed existing subscribers that from July onward, monthly fee would be $25.50.c. July 2011: Offered e-mail service to subscribers and upgraded other online services.d. October 2011: Dismissed the vice president of marketing after significant slowdown in subscribers and subscription revenues, based on July through September 2011 data in the following table.e. October 2011: Reduced subscription fee to $22.50 per month from November 2011 onward. Results for July???September 2011 are as follows:

Monthly Fee Per Subscriber Month/Year June 2009 December 2009 June 2010 December

REQUIRED: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 atWebNews.com.

Advertising Revenues $ 415,972 867,246 892,134 1,517,950 2,976,538 Actual Number of Subscribers Monthly Fee Per Subscriber Month/Year June 2009 December 2009 June 2010 December 2010 June 2011 29,745 55,223 59,641 87,674 147,921 $15.50 20.50 20.50 20.50 20.50

Step by Step Solution

3.46 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Planning and control decisions Internet Company 1 Planning decisions a Decision to raise monthly sub... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

58-B-C-A-A-R (178).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!