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Ex. 19(5)-16 Sol Broak-Even (in account) ON milion (rounded) accounts Supporting calculations: Revenue per account (in Millions): Total revenue (in milions) Total accounts (in Millions)
Ex. 19(5)-16 Sol Broak-Even (in account) ON milion (rounded) accounts Supporting calculations: Revenue per account (in Millions): Total revenue (in milions) Total accounts (in Millions) Revenue per account (in millions) Variable cost per account in millions Full Amount Variable Percentage 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) Total fixed costs (in milions) Fixed Percentage Full Amount Cost of revenue (in Millions Selling gen., admin, exp. (in millions) Depreciation Totalfixed costs in millions B. Break-even in revenue, in millions): Total costs Divided by number of accounts Break-even million 4 a Search Chapter 19 Homework Annotations Accessibility Bookmark Quick Tour Print eTextbook: Financial & Managerial Accounting EX 19-16. Break-even analysis for a service company Obj. 3 Sprint Nextel is one of the largest digital wireless service providers in the United States. REAL WHILE 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): DO TEMPLATE Cost of revenue Getting gener, and adminive exponent Deprecation 9.765 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). 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. sto Transaction How much revenue per account would be sufficient for Sprint Nextel to break even if the number of accounts remained constant? Problems Series A
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