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:

Mapping

The process of creating a visual representation of a particular area or concept.

Comprehension

The ability to understand and make sense of text, speech, or any form of communication.

Dynamics

The forces or properties that stimulate growth, development, or change within a system or process.