A New York City daily newspaper called “Manhattan Today” charges an annual subsc

Question

A New York City daily newspaper called “Manhattan Today” charges an annual subscription fee of $162. Customers prepay their subscriptions and receive 240 issues over the year. To attract more subscribers, the company offered new subscribers the ability to pay $160 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through Central Park in a horse-drawn carriage. The list price of a carriage ride is $150 per hour. The company estimates that approximately 30% of the coupons will be redeemed.

i need help on getting the numbers correct on the accounts

Explanation / Answer

Particulars Amount Current subscription Fees A $162 New subscruption Fees B $160 List Price of Carriage Ride per hour C $150 % of Discount offerred by the Coupon D 40% % Expected Redumption E 30% Net Receipts to the company ( if we assume that the company has to bare the cost of discount availed by the customer) F = B-(C*D*E) $142 Net Out flow at customer End (If we assume that customer avails the 1 Hour ride) G = B+C-(C*D) $250

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