EX 20-16 Break-even analysis for a service company Obj. 3 Sprint Corporation (S) is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 60 million direct subscribers (accounts) that generated revenue of $33,347 million. Costs and expenses for the year were as follows (in millions): Cost of revenue Selling, general, and administrative expenses Depreciation and amortization $14.958 7.994 8.150 Assume that 30% of the cost of revenue and 70% of the selling, general, and administrative expenses are fixed to the number of direct subscribers (accounts). What is Sprint's break-even number of accounts, using the data and assumptions given? Round to one decimal place. b. How much revenue per account would be sufficient for Sprint to break even if the number of accounts remained constant? Round to one decimal place. a. Total Fixed Costs Variable Cost per Account Il Break-Even (in accounts) Revenue per Account 15 16 17 18 11 19 20 21 22 23 24 = = million (rounded) accounts 25 26 27 Supporting calculations: 28 29 Revenue per account (in millions): Total revenue (in millions) Total accounts (in millions) 30 million (rounded) accounts Supporting calculations: Revenue per account (in millions): Total revenue (in millions) 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 millions): Full Amount Fixed Percentage Cost of revenue (in millions) Selling, gen., admin, exp. (in millions) Depreciation Total fixed costs (in millions) Ex. 2006)-16 0 11 42 Total fixed costs (in millions): Fixed Percentage Full Amount 43 44 Cost of revenue (in millions) Selling, gen., admin. exp. (in millions) Depreciation Total fixed costs (in millions) 45 46 47 48 49 50 b. 51 52 Break-even (in $ revenue, in millions): Total costs Divided by number of accounts Break-even 53 54 million 55 56 57 Ex. 2006)-16 Enter