Posted: March 30th, 2016
Develop simple cost volume profit models for Netflix and Blockbuster.
What is the unit volume break even level of Netflix?
What is the break even revenue level of Blockbuster?
How can Netflix and Blockbuster achieve profits equal to 10% of revenues?
How can Blockbuster improve profitability given the CVP model?
What conditions would allow Netflix to increase price, and how would that affect profits?
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