Question

Tri-Anything, Limited, is a British 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

Answer 1

The value of information to subscribers of the weekly newsletter is $236.83.

Step-by-step explanation:

The value of information to subscribers of the weekly newsletter is $236.83.

To calculate the value, we need to subtract the cost of preparing and distributing the newsletter from the total revenue generated by the subscriptions.

1. First, we calculate the revenue: $299.99 (annual subscription rate) x 190 (number of subscribers) = $56,998.10.
2. Then, we subtract the cost: $56,998.10 - $12,000 (annual costs) = $44,998.10.
3. Finally, we divide the remaining value by the number of subscribers: $44,998.10 / 190 = $236.83.