Chopra,Limited,is an Indian company operating in New York state.It offers stylized,boutique public relations services to upscale retailers in quaint New England towns.A major source of revenue is a weekly newsletter that reports on current and projected tourist travel and spending patterns.Preparation of the newsletter requires study and analysis of weather conditions,economic activity,and travel costs.It is available at an annual subscription rate of $299.99.There are currently 190 subscribers.Preparation and distribution of the newsletter costs $12,000 annually.The value of information to subscribers is
A)$236.83.
B)$44,998.10.
C)less than $63.16.
D)at least $300.00.

Question

Quizplus · Accepted Answer

The value of information to subscribers is at least $300.00, as this is the annual subscription rate charged by Chopra, Limited. As there are 190 subscribers, the minimum revenue generated from subscriptions is 190 x $300.00 = $57,000.00, which exceeds the cost of preparation and distribution of the newsletter ($12,000.00). Therefore, the value of information to subscribers is at least equal to the subscription rate.

Chopra,Limited,is an Indian Company Operating in New York State