Ask Question
BusinessBusiness
29 May, 09:53

Paying for a WiFi Network. Consider a small town with 1,000 households. The town could install a wireless WiFi network that would give everyone in town access to the Internet. Each household is willing to pay a maximum of $50 per year for the network, and the cost of the system is $20,000 per year. (Related to Application 1 on page 647.) a. Is the WiFi system efficient? b. Suppose the town asks for voluntary contributions to support the network. Would you expect the total contributions to cover the $20,000 cost? c. Suppose the town keeps track of the contributions and issues passwords to people who contributed at least $20. Would you expect the total contributions to cover the $20,000 cost?

+3
Answers (1)
  1. 29 May, 10:52
    0
    a. The efficiency of the WiFi system will depend upon the usage and the speed of internet provided by the ISP (Internet Service Provider). Keeping in mind that the town have 1,000 households the network to choose will need to be fast and reliable also each household should be allowed to download a certain amount of DATA via internet so that the each household can get benefit from the WiFi System.

    b. If each household is willing to pay $50 per year the contribution received will be $50*1,000 = $50,000. So the cost of WiFi system will be recovered.

    c. If the town keeps tracks of the contributions and ask the household to contribute at least $20 per year so yes the total cost of WiFi system will be recovered. $20 * 1,000 = $20,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Paying for a WiFi Network. Consider a small town with 1,000 households. The town could install a wireless WiFi network that would give ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Juhasz Corporation makes a product with the following standards for direct labor and variable overhead: Standard Quantity or Hours Standard Price or Rate Direct labor 0.50 hours $ 21.00 per hour Variable overhead 0.50 hours $ 4.
Answers (2)
Who were ibm's major competitors in the personal computer industry during the 1990s?
Answers (1)
The optimal capital structure has been achieved when the A. weight of equity is equal to the weight of debt. B. debt-equity ratio selected results in the lowest possible weighted average cost of capital. C. firm is totally financed with debt. D.
Answers (1)
Shaun is a student who has received an athletic scholarship to State University. The scholarship paid $14,000 for tuition, $2,500 for fees, and $1,000 for books.
Answers (1)
At the end of the current year, $22,650 of fees have been earned but have not been billed to clients. Required: A. Journalize the adjusting entry to record the accrued fees on December 31.
Answers (1)
New Questions in Business
Which bond would pay higher interest rate on your investment a treasury bond or a junk bond
Answers (1)
Spring Company uses activity-based costing to allocate their overhead costs. Setup costs ot $100,000 are based on number of batches. Plant service costs of $65,000 are based on square footage.
Answers (1)
Assume the macro islands can produce either 25 fishing boats or 150 jars of guava jelly in one hour. the micro islands can produce either 30 fishing boats or 300 jars of guava jelly in the same time period. this data tells an economist that
Answers (1)
Your friend really likes a t-shirt that you purchased last week at a concert by your mutually favorite musician group. You purchased the very last shirt in your size and there are no more available.
No Answers
An effective way to begin defining the purpose of a marketing plan, is to make a list of all the information needed to prepare the marketing plan A. True B. False
Answers (1)
Home » Business » Paying for a WiFi Network. Consider a small town with 1,000 households. The town could install a wireless WiFi network that would give everyone in town access to the Internet.
Sign Up Forgot Password?