Break-Even (in accounts) Il Total Fixed Costs Revenue per Account Variable Cost per Account $15,326.8 $539.0 S15,326.8 million (rounded) accounts Supporting calculations: Revenue per account (in millions) Total revenue (in millions) Total accounts (in millions) Revenue per account (in millions) 32.5 Variable cost per account in millions): Full Amount S 20,841 9.765 Cost of revenue in millions) Selling, gen. admin exp in millions) Total variable costs Divided by number of accounts Variable cost per account (in millions) Variable Percentage 70% 30% $ 14,588.7 2,929.5 $ 17 518 2 32.5 5390 GA Total fixed costs (in millions) X Cost of revenue (in millions) Selling. gen., admin. exp. (in millions) Depreciation Total fixed costs (in millions) Full Amount S20 841 9.765 Fixed Percentage 30% 70% S 6,252.3 6,835 5 2.239.0 $15,326 8 8 19 50 b. Ex. 19(4)-16 OBJ. 3 For the coming year, Loudermilk Inc. anticipates fixed costs of $600 000 a unit variable Cost Behavior and Cost-Volume-Profit Analysis EX 4-16 Break-even analysis for a service company 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 administra- tive 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 assump- tions 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? EX 4-17 Cost-volume-profit chart OBJ.4