Answered step by step
Verified Expert Solution
Question
1 Approved Answer
ignment-take&inprogress-false INDUSTRY.BR. Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers in the United States. In a recent
ignment-take&inprogress-false INDUSTRY.BR. Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (asccounts) that generated revenue of $35,500. Costs and expenses for the year were as follows: Cost of revenue Selling, general, and administrative expenses Depreciation Assume that 75% of the cost of revenue and 35% of the selling, general, and admi In part (a) and (b), round all interim calculations and final answers to one decimal place. a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole numbe $14,600 9,900 3,900 ALGO ALGO ALGO .ALGO nistrative expenses are variable to the number of direct subscribers (accounts). 6.ALGO accounts b. How much revenue per account would be sufficient for Rotelco to break even if the number of accounts remained constant? Round to the nearest dollar. 21.ALGO per account 25.ALGo e to search USE YOUR SMARTPHONE FOR
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started