how to input this question in cocalc? Netflix currently has approximately 47.13
ID: 3167414 • Letter: H
Question
how to input this question in cocalc?
Explanation / Answer
Current price=$8.99 per month
Current subscribers=47.13 million
If there is increase of subscription rate by x dollars; decrease in subscriber=23x percent
If there is decrease in monthly subscription rate by x $; increase in subscriber=23x percent
Current monthly revenue=47.13 million
CALCULATION OF MONTHLY REVENUE WITH DECREASE IN PRICE IS GIVEN BELOW:
A
B
C
(B-47.13)*A
Subscription
number of
Total subscription
Subscription From New Customer
Rate(Dollar)
customer(million)
Million dollar
million dollar
8.99
47.13
423.70
8.89
48.21399
428.62
9.64
8.79
49.29798
433.33
19.06
8.69
50.38197
437.82
28.26
8.59
51.46596
442.09
37.25
8.49
52.54995
446.15
46.02
8.39
53.63394
449.99
54.57
8.29
54.71793
453.61
62.90
8.19
55.80192
457.02
71.02
8.09
56.88591
460.21
78.93
7.99
57.9699
463.18
86.61
7.89
59.05389
465.94
94.08
7.79
60.13788
468.47
101.33
7.69
61.22187
470.80
108.37
7.59
62.30586
472.90
115.18
7.49
63.38985
474.79
121.79
7.39
64.47384
476.46
128.17
7.29
65.55783
477.92
134.34
7.19
66.64182
479.15
140.29
7.09
67.72581
480.18
146.02
6.99
68.8098
480.98
151.54
6.89
69.89379
481.57
156.84
6.79
70.97778
481.94
161.93
6.69
72.06177
482.09
166.79
6.59
73.14576
482.03
171.44
6.49
74.22975
481.75
175.88
6.39
75.31374
481.25
180.09
6.29
76.39773
480.54
184.09
6.19
77.48172
479.61
187.88
6.09
78.56571
478.47
191.44
5.99
79.6497
477.10
194.79
5.89
80.73369
475.52
197.93
5.79
81.81768
473.72
200.84
5.69
82.90167
471.71
203.54
5.59
83.98566
469.48
206.02
5.49
85.06965
467.03
208.29
5.39
86.15364
464.37
210.34
5.29
87.23763
461.49
212.17
5.19
88.32162
458.39
213.78
5.09
89.40561
455.07
215.18
4.99
90.4896
451.54
216.36
The maximum revenue at $6,69 ; Revenue=$482.09
Doing further analysis at this level:
6.79
70.97778
481.94
161.9264262
6.78
71.086179
481.9642936
162.4228936
6.77
71.194578
481.9872931
162.9171931
6.76
71.302977
482.0081245
163.4093245
6.75
71.411376
482.026788
163.899288
6.74
71.519775
482.0432835
164.3870835
6.73
71.628174
482.057611
164.872711
6.72
71.736573
482.0697706
165.3561706
6.71
71.844972
482.0797621
165.8374621
6.7
71.953371
482.0875857
166.3165857
6.69
72.06177
482.0932413
166.7935413
6.68
72.170169
482.0967289
167.2683289
6.67
72.278568
482.0980486
167.7409486
6.66
72.386967
482.0972002
168.2114002
6.65
72.495366
482.0941839
168.6796839
6.64
72.603765
482.0889996
169.1457996
6.63
72.712164
482.0816473
169.6097473
6.62
72.820563
482.0721271
170.0715271
6.61
72.928962
482.0604388
170.5311388
6.6
73.037361
482.0465826
170.9885826
6.59
73.14576
482.0305584
171.4438584
MAXIMUM MONTHLY REVENUE AT MONTHLY SUBSCRIPTION RATE OF $6.67.
MONTHLY REVENUE=$482.0980486 million
2. SESITIVITY:
At this region a 10% increase in subscription rate from 6,67 to7.34 will decrease the total revenue to $476 million ie decrease by more than 10%
3. If monthly subscription rate is increased by $1, the number of subscriber will be =(1-0.23)*47.13 million=0.77*47.13 million=36.2901 million
Total Monthly subscription=(8.99+1)*36.2901 million dollar=362.54 million dollar
Current Subscription =423.70 million dollar
THERE WILL BE REDUCTION OF SUBSCRIPTION BY(423.70-362.54)=61.16million dollar
There will be NET LOSS with this move and hence not advisable
A
B
C
(B-47.13)*A
Subscription
number of
Total subscription
Subscription From New Customer
Rate(Dollar)
customer(million)
Million dollar
million dollar
8.99
47.13
423.70
8.89
48.21399
428.62
9.64
8.79
49.29798
433.33
19.06
8.69
50.38197
437.82
28.26
8.59
51.46596
442.09
37.25
8.49
52.54995
446.15
46.02
8.39
53.63394
449.99
54.57
8.29
54.71793
453.61
62.90
8.19
55.80192
457.02
71.02
8.09
56.88591
460.21
78.93
7.99
57.9699
463.18
86.61
7.89
59.05389
465.94
94.08
7.79
60.13788
468.47
101.33
7.69
61.22187
470.80
108.37
7.59
62.30586
472.90
115.18
7.49
63.38985
474.79
121.79
7.39
64.47384
476.46
128.17
7.29
65.55783
477.92
134.34
7.19
66.64182
479.15
140.29
7.09
67.72581
480.18
146.02
6.99
68.8098
480.98
151.54
6.89
69.89379
481.57
156.84
6.79
70.97778
481.94
161.93
6.69
72.06177
482.09
166.79
6.59
73.14576
482.03
171.44
6.49
74.22975
481.75
175.88
6.39
75.31374
481.25
180.09
6.29
76.39773
480.54
184.09
6.19
77.48172
479.61
187.88
6.09
78.56571
478.47
191.44
5.99
79.6497
477.10
194.79
5.89
80.73369
475.52
197.93
5.79
81.81768
473.72
200.84
5.69
82.90167
471.71
203.54
5.59
83.98566
469.48
206.02
5.49
85.06965
467.03
208.29
5.39
86.15364
464.37
210.34
5.29
87.23763
461.49
212.17
5.19
88.32162
458.39
213.78
5.09
89.40561
455.07
215.18
4.99
90.4896
451.54
216.36
The maximum revenue at $6,69 ; Revenue=$482.09
Doing further analysis at this level:
6.79
70.97778
481.94
161.9264262
6.78
71.086179
481.9642936
162.4228936
6.77
71.194578
481.9872931
162.9171931
6.76
71.302977
482.0081245
163.4093245
6.75
71.411376
482.026788
163.899288
6.74
71.519775
482.0432835
164.3870835
6.73
71.628174
482.057611
164.872711
6.72
71.736573
482.0697706
165.3561706
6.71
71.844972
482.0797621
165.8374621
6.7
71.953371
482.0875857
166.3165857
6.69
72.06177
482.0932413
166.7935413
6.68
72.170169
482.0967289
167.2683289
6.67
72.278568
482.0980486
167.7409486
6.66
72.386967
482.0972002
168.2114002
6.65
72.495366
482.0941839
168.6796839
6.64
72.603765
482.0889996
169.1457996
6.63
72.712164
482.0816473
169.6097473
6.62
72.820563
482.0721271
170.0715271
6.61
72.928962
482.0604388
170.5311388
6.6
73.037361
482.0465826
170.9885826
6.59
73.14576
482.0305584
171.4438584
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