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Book Calculator Printem reak-Even Analysis edia outlets often have websites that provide in-depth coverage of news and events Portions of these websites are restricted to
Book Calculator Printem reak-Even Analysis edia outlets often have websites that provide in-depth coverage of news and events Portions of these websites are restricted to merrbers who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to introduce viewers to the website. Assume that during a recent fiscal year, one outlet spent $4,686,500 on promotional campaign for its website that offered two free months of service for new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 28 months Revenue per month per customer subscription $21 Variable cost per month per customer subscription Determine the number of new customer accounts needed to break even on the cost of the promotional campaign In Torming your answer. (2) treat the cost of the promotional campaign as a fixed cost, and (2) treat the revenue less variable cost per account for the subscription period as the unit contribution margin. 27,895.8 X accounts Feedbac Check My Work Previous Next c OLOTO * VRO 00 O b
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