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Break Even Analysis Helle outlets often have states that provide in-depth coverage of news and events. Portions of these websites are restricted to members who
Break Even Analysis Helle outlets often have states that provide in-depth coverage of news and events. Portions of these websites are restricted to members who pay a monthly subsination to gain access to exclus news and These websites typically uffer a free trial period to introduce viewers to the websits, Assume that during a recent fiscal year, one outlet spere $2,307,900 on a promotional campagn for the west that offered twe free months of service for new subscibers. In additun, assume the following information Number of months an average new custamer stays with the service (including the two hee months) Revenue per month per customer subscription Variable cost per month per costomer subscription 22 mths $16 15 Determine the mumber of new customer accounts heeded to break even on the cost of the promotional campaign. In forming your answer, [1] treat the cost of the promotional campaign as a fed cost and (2) treet the revenue less variable cost per account for the subsorption period as the unit centrution margin. 7,693 X cunts My Fixed costs divided try the unit contribution margm equis break-even point in units
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