Question
Demmel Company had 100 customer accounts that generated revenue of $32,700. Costs and expenses for the year were as follows: Cost of revenue $14,100 Selling,
Demmel Company had 100 customer accounts that generated revenue of $32,700. Costs and expenses for the year were as follows:
Cost of revenue | $14,100 |
Selling, general, and administrative expenses | 11,100 |
Depreciation, amortization, and other expenses | 3,600 |
Assume that 65% of the cost of revenue and 30% of the selling, general, and administrative expenses are variable to the number of customer accounts.
a. What is Demmel's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number. customer accounts
b. How much revenue per account would be sufficient for Demmel to break even if the number of accounts remained constant? Round to the nearest dollar. $ per account
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