My Media Place is considering entering the online digital lockbox business by renting server space to customers to store their movies, music, photos, and other computer files. Its managers believe this business has a large potential market as more individuals and small businesses are starting to move their backup files to secure online servers that can be accessed around the clock. Here is a summary of data projections for this business: Selling price per year per customer account: $95 Direct supplies Direct labor Overhead Selling expense Variable cost per unit $23 8 6 5 $42 Overhead $195,000 Advertising 55,000 Administrative expense 68,000 Total annual fixed costs S 318,000 Required: 1. Compute the breakeven points in customer accounts. 2. My Media Place projects sales to 6,500 customer accounts next year. If that projection is accurate, how much profit will it realize? 3. To improve profitability, management is considering the following four alternative courses of action. (In performing the required steps, use the figures from items 1 and 2.. and treat each alternative independently.) Calculate the number of accounts My Media Place must sell to generate a targeted profit of $95,400. Assume that costs and selling price remain constant. b. Calculate the operating income if the company increases the number of accounts sold by 20 percent and cuts the selling price by $5 per account. Determine the number of accounts that must be sold to breakeven if advertising costs (fixed costs) increase by $47,700. d. Find the number of accounts that must be sold to generate a targeted profit of $120,000 if variable costs decrease by 10 percent. a. c