Break-Even Analysis Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $48,100. Costs and expenses for the year were as follows: Cost of revenue Selling, general, and administrative expenses Depreciation Assume that 65% of the cost of revenue and 20% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts) a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number $19,700 13,500 5,300 720,000 x accounts b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar. 720,000 X per account Feedback Check My Work a. Fixed costs divided by unit contribution margin equals break-even point in units. b. Fixed costs divided by X - variable costs equals number of subscribers. Solving for X will result in the break-even revenue per account. Leaming Objective 3