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Exercise 11: Acme Mini-DishTheAcmeCompanyhasaheadstartinsellingandinstallingsatellitemini-dishesinan unspecifiedpartoftheworld.
Exercise 11: Acme Mini-DishTheAcmeCompanyhasaheadstartinsellingandinstallingsatellitemini-dishesinan unspecifiedpartoftheworld.Acmehassetupamedium-sizeoperationwithmonthlyfixedcosts of$5,000andaninstallationcrewthatisexpectedtoinstalldishesatarateof100permonthfor the foreseeable future. Variable installation costs are $300 per dish. Additional costs are: programmingandsatelliterentalfeesof$5persubscriberpermonthandbillingandcustomer servicecostsof$1persubscriberpermonth.Acmechargescustomers$50forinstallingthedish and $20 per month in subscriptionfees.1.HowlongwillittakeAcmetoturnaprofit?2.HowmuchcashwillAcmeneedtofundthisventure?3.SupposeAcmeraisesitssubscriptionfeesto$25permonthattheone-yearanniversary ofeachsubscriber.NowhowlongwillittakeAcmetoturnaprofit?Howmuchcashwill Acmeneed?4.Prepareatableofcumulativeprofitoverfiveyears(60months)forinstallationratesof 80, 90, 100, 110, and120.5.Prepareatableofcumulativeprofitoverfiveyears(60months)forsubscriptionfeesat theyearoneanniversaryof$20to$30in$1increments.