13. How will Flickr's managers decide which products and services to offer? Suppose Flickr is considering entering the online digital lockbox business by renting server space to customers to store their movies, music, photos, and other computer files. Its managers believe this service has a large potential market as more individuals and small businesses are starting to move their backup files to secure online servers that can be accessed around the clock. A summary of the data projections for this potential service offering follows. Selling price per year per customer account K95 Variable costs per unit: K23 Direct supplies Direct labor B Overhead 6 Selling expense 5 Total variable costs per unit K42 Annual fixed costs: Overhead K195,000 Advertising 55,000 Administrative expense 68,000 Total annual fixed costs K318,000 A. Compute the annual breakeven point in customer accounts. B. Assume the company projects sales to 6,500 customer accounts next year. If that projection is accurate, how much profit will it realize? C. To improve profitability, management is considering the following four alternative courses of action. (In performing the required steps, use the figures from items A and B, and treat each alternative independently.) L. Calculate the number accounts the business must sell to generate a targeted profit of $95,400. Assume that costs and selling price remain constant Calculate the operating income if the company increases the number of accounts sold by 20 percent and cuts the selling price by $5 per account. De the number of ac that must be sold to break even if advertising costs (fixed costs) increase by $47,700. iv. Find the number of accounts that must be sold to generate a targeted profit of $120,000 af variable costs decrease by 10 percent (15 marks)