Question

In: Economics

Memo 4 To: Pricing Manager, Tri State Region From: Regional Vice President, Tri-State Region Re: Revenue...

Memo 4 To: Pricing Manager, Tri State Region From: Regional Vice President, Tri-State Region Re: Revenue from EPIX As you are aware, we recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our contribution margin from our subscriber base. Currently we have 15,059 subscribers, generating monthly revenue of $146,823. In an earlier study, our marketing department generated data on sales quantities at various price levels. In addition, we have included the licensing cost as well as regional expenses. Please provide a recommendation of the profit-maximizing price, and how much our profits will increase if we adjust price to the recommended level. Also, please note whether this will impact our revenue.

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Memo 4 To: Pricing Manager, Tri State Region From: Regional Vice President, Tri-State Region Re: Revenue...
Memo 4 To: Pricing Manager, Tri State Region From: Regional Vice President, Tri-State Region Re: Revenue from EPIX As you are aware, we recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our contribution margin from our subscriber base. Currently we have 15,059 subscribers, generating monthly revenue of $146,823. In...
Memo 1 To:                       Pricing Manager, Tri-State Region From:             &nbsp
Memo 1 To:                       Pricing Manager, Tri-State Region From:                  Regional Vice President, Tri-State Region Re:                       Revenue from EPIX We recently added the EPIX Movie Channels as part of a new tier of programming for our digital video subscribers. The EPIX channels are sold as an add-on package for $9.75 per month, but we would like to potentially increase our revenue from our subscriber base. Currently we have about 15,059 subscribers, generating monthly revenue of $146,823. Some have suggested...
Memo 2 To: Pricing Manager, Austin From: Vice President, Marketing Re: Google Fiber As you are...
Memo 2 To: Pricing Manager, Austin From: Vice President, Marketing Re: Google Fiber As you are aware, Google has been entering select markets with its Google Fiber service that competes directly with our high-speed data and video services. Even though its market penetration has been moderate, Google has deep pockets and excellent brand awareness. As a result, we are paying close attention to markets that it is entering. Within the last year, we completed our own fiber upgrade in the...
Current Situation You are and Vice President and CFO at Warrington Regional Hospital, a not-for-profit tertiary...
Current Situation You are and Vice President and CFO at Warrington Regional Hospital, a not-for-profit tertiary care facility with 225 beds located in a growing city in Southern California. The chair of the board of directors has informed you that the board, in concert with local community and political leadership, believes the hospital should consider expanding services. They want you to analyze the financial feasibility of either building an ambulatory orthopedic center on a parcel of land located 31 miles...
The procurement manager from a large merchandising firm has called your vice president for production to...
The procurement manager from a large merchandising firm has called your vice president for production to get a price quote for an additional 250 units of a given product. The vice president has asked you to prepare a cost estimate. The number of hours required to produce a unit is 4. The average labor rate is $16 per hour. The materials cost $22 per unit. Overhead for an additional 250 units is estimated at 35% of the direct labor cost....
A regional planner is studying the demographics in a region of a particular state. She has...
A regional planner is studying the demographics in a region of a particular state. She has gathered the following data on nine counties. Country Median Income Median Age Coastal A $47,963 56.4 1 B 49,585 58.9 1 C 46,440 57.5 1 D 46,391 41.2 1 E 34,806 39.4 0 F 39,416 41.2 1 G 35,549 41.3 0 H 30,796 33.5 0 J 32,233 21.7 1 (a) Is there a linear relationship between the median income and median age? (Round your...
One-Year Contract Robert S. Ohanian was vice president of sales for the West Region of Avis...
One-Year Contract Robert S. Ohanian was vice president of sales for the West Region of Avis Rent a Car System, Inc. (Avis). Officers of Avis testified that Ohanian’s performance in the West Region was excellent, and, in a depressed economic period, Ohanian’s West Region stood out as the one region that was growing and profitable. In the fall of 1980, when Avis’s Northeast Region was doing badly, the president of Avis asked Ohanian to take over that region. Ohanian was...
Imagine you are the manager of operations for a manufacturing company. Your vice president wants to...
Imagine you are the manager of operations for a manufacturing company. Your vice president wants to expand production by building a new facility, and she would like you to develop a business case for the project. Assume that your company’s weighted average cost of capital is 13%, the after-tax cost of debt is 7%, preferred stock is 10.5%, and common equity is 15%. As you work on the business case, you surmise that this is a fairly risky project because...
4 (a)  Define CSR.   4 (b) Assume that you are the Vice President of a large very...
4 (a)  Define CSR.   4 (b) Assume that you are the Vice President of a large very profitable public limited company, not known for a strong ethical culture. How would you convert it into an ethical organization?
“This is a rough decision,” said Stan Wheatley, store manager and vice president of Bassfield Department...
“This is a rough decision,” said Stan Wheatley, store manager and vice president of Bassfield Department Store. Bassfield, a large urban retailer with 350 employees, is a family-owned business that has operated in Levittston for over 30 years. Wheatley believes strongly in delegating authority to lower levels of management. However, Adele Stafford, manager of the women’s sportswear department, has recently referred a problem to him. Six weeks ago, Mary Alice Brooks, aged 23, was hired as a temporary employee. She...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT