Purchase Solution

Five suggestions for improvement of News Company

Not what you're looking for?

Ask Custom Question

See the attached file.

Make a Decision

Introduction:

You are the accountant of Selcom News, a local cable provider who offers services such as weekly TV guides and local-area information on weather, restaurants, and movie theaters to its subscribers.

However, its main revenue is from the fees charged from its subscribers and banner advertisements. The following is the revenue data from its last three half-yearly results:

Month/Year Banner Advertising Revenues ($) Actual Number of Subscribers Monthly Fee per Subscription ($)
June 2004 400,988 28,642 14.95
December 2004 833,158 54,813 19.95
June 2005 861,034 58,178 19.95
December 2005 1,478,072 86,437 19.95
June 2006 2,916,962 146,581 19.95

Task(s):
 Identify the five decisions that you would make, based on the information you possess as an accountant.
 Provide pertinent information as to why you would make that decision.
 For each decision, indicate whether you will be acting in a problem-solving, scorekeeping, or attention-directing role. Explain how.

Attachments
Purchase this Solution

Solution Summary

The answer contains five suggestions for improving subscription, increase in advertsing revenue and growth in overall revenue of News company

Solution Preview

See attached Excel file.

 Identify the five decisions that you would make, based on the information you possess as an accountant.

1. It is advisable to increase the monthly subscription fee by $ 2 .Because, there has been continuous increase of the number of subscribers and the number will increase in the future years also. Therefore, by charging high subscription fee, the revenues can be increased. Here accountant has to act as the attention directing role, because, the growth rate in the number of subscribers is reduced due to increase in subscription rate, he has advise the management to take special efforts to ...

Purchase this Solution


Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.