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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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