An interactive television service that costs 10 per client p

An interactive television service that costs $10 per client per month to provide can be sold on the information highway for $15 per client per month. If a service area includes a potential of 15,000 customers, what is the most a company could spend on annual fixed costs to acquire and maintain the equipment?

Please show work and the answer should be 75,000 NOT 90,000 like the last person posted!

Solution

Ans. television cost $10

sales price $15

difference $5

therefore $5*15000 customers equals to $75000.

An interactive television service that costs $10 per client per month to provide can be sold on the information highway for $15 per client per month. If a servi

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