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:

Warranty of Authority

An assurance provided by an agent to a third party that they have the authority to act on behalf of another person or entity in a legal or business transaction.

Breach

The violation or infringement of a law, duty, agreement, or trust.

Authority

denotes the power or right to give orders, make decisions, and enforce obedience.

Independent Contractor

An individual or business that provides goods or services to another entity under terms specified in a contract or within a verbal agreement, not classified as an employee.