Question about netflix.

Netflix profit (tricky mathematical question) Please help?

• According to Netflix’s 2011 10K, Netflix pockets 37 cents for every dollar of subscription fees they earn from each customer. Thus, Netflix’s profit per subscriber for each month = .37 × monthly price charged. Netflix decides to spend $20,000,000 in an advertising campaign in order to attract new customers. Assuming Netflix is charging the higher price of $16.00, how many new customers would they need to attract in the first month alone in order to break even on their advertising expenses?

• Answer:

  20,000,000 = .37 (16) x then solve.