Break-Even Analysis ;

Sprint Nextel is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 32.5 million direct subscribers (accounts) that generated revenue of $35,345 million. Costs and expenses for the year were as follows (in millions):

Cost of revenue $20,841

Selling, general, and administrative expenses 9,765

Depreciation 2,239

Assume that 70% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts).

a). What is Sprint Nextel's break-even number of accounts, using the data and assumptions given? round units (accounts) and per-account amounts to one decimal place.

b). How much revenue per account would be sufficient for Sprint Nextel to break even if the number of accounts remained constant?

Please and Thanks.