A Local Cable Company Has a Fixed Cost of $7400

question 12

Short Answer

A local cable company has a fixed cost of $7400 per month and variable costs of $50 per month per subscriber. If the company charges on average $110 per month to its customers, find the breakeven point in terms of subscribers per month for the company.

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Definitions:

Potential Causal Relationship

A relationship between two variables where changes in one variable potentially cause changes in the other but have not been definitively proven.

Hypothesis

A hunch or prediction that certain variables are related in certain ways.

Incidence

The number of new cases of a disorder occurring in a population over a specific period of time.

Prevalence

The proportion of a particular population found to be affected by a medical condition, mental health disorder, or broader phenomenon at a specific time.