Question
In: Accounting
Rotelco is one of the largest digital wireless service providers in the United States. In a...
Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers (accounts) that generated revenue of $28,400. Costs and expenses for the year were as follows: Cost of revenue $13,900 Selling, general, and administrative expenses 9,400 Depreciation 3,100 Assume that 75% of the cost of revenue and 20% of the selling, general, and administrative expenses are variable to the number of direct subscribers (accounts). a. What is Rotelco's break-even number of accounts, using the data and assumptions above? Round to the nearest whole number. 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. $ per account
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Rotelco is one of the largest digital wireless service providers in the United States. In a...
Rotelco is one of the largest digital wireless service providers
in the United States. In a recent year, it had approximately 100
million direct subscribers (accounts) that generated revenue of
$31,100 million. Costs and expenses for the year were as
follows:
Cost of revenue
$14,600
Selling, general, and administrative expenses
10,000
Depreciation
3,400
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).
a....
Rotelco is one of the largest digital wireless service providers in the United States. In a...
Rotelco is one of the largest digital wireless service providers
in the United States. In a recent year, it had approximately 100
million direct subscribers (accounts) that generated revenue of
$30,200 million. Costs and expenses for the year were as
follows:
Cost of revenue
$14,500
Selling, general, and administrative expenses
8,800
Depreciation
3,300
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).
a....
Rotelco is one of the largest digital wireless service providers in the United States. In a...
Rotelco is one of the largest digital wireless service providers
in the United States. In a recent year, it had approximately 100
million direct subscribers (accounts) that generated revenue of
$54,300 million. Costs and expenses for the year were as
follows:
Cost of revenue
$22,300
Selling, general, and administrative expenses
17,900
Depreciation
6,000
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).
a....
Break-Even Analysis Rotelco is one of the largest digital wireless service providers in the United States....
Break-Even Analysis
Rotelco is one of the largest digital wireless service providers
in the United States. In a recent year, it had approximately 100
direct subscribers (accounts) that generated revenue of $52,900.
Costs and expenses for the year were as follows:
Cost of revenue
$23,300
Selling, general, and administrative expenses
17,500
Depreciation
5,800
Assume that 60% of the cost of revenue and 25% of the selling,
general, and administrative expenses are variable to the number of
direct subscribers (accounts).
a....
Sprint Nextel is one of the largest digital wireless service providers in the United States. In...
Sprint Nextel is one of the largest digital wireless service
providers in the United States. 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): Cost of revenue $20,841
Selling, general, and administrative expenses 9,765 Depreciation
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...
Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers...
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
(accounts) that generated revenue of $36,300. Costs and expenses
for the year were as follows: Cost of revenue $16,300 Selling,
general, and administrative expenses 11,600 Depreciation 4,000
Assume that 60% of the cost of revenue and 30% of the selling,
general, and administrative expenses are variable to the number of...
Break-even analysis for a service company Sprint Nextel is one of the largest digital wireless service...
Break-even analysis for a service company
Sprint Nextel is one of the largest digital wireless service
providers in the United States. 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):
Cost of revenue
$20,841
Selling, general, and administrative expenses
9,765
Depreciation
2,239
Assume that 70% of the cost of revenue and 30% of the selling,
general, and administrative expenses are...
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In...
Cabinaire Inc. is one of the largest manufacturers of office
furniture in the United States. In Grand Rapids, Michigan, it
assembles filing cabinets in an Assembly Department. Assume the
following information for the Assembly Department:
Direct labor per filing cabinet
30 minutes
Supervisor salaries
$117,000 per month
Depreciation
$29,000 per month
Direct labor rate
$15 per hour
Prepare a flexible budget for 14,000, 18,000, and 21,000 filing
cabinets for the month of March in the Assembly Department similar
to Exhibit...
Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In...
Cabinaire Inc. is one of the largest manufacturers of office
furniture in the United States. In Grand Rapids, Michigan, it
produces filing cabinets in two departments: Fabrication and Trim
Assembly. Assume the following information for the Fabrication
Department:
Steel per filing cabinet
41 pounds
Direct labor per filing cabinet
20 minutes
Supervisor salaries
$141,000 per month
Depreciation
$32,000 per month
Direct labor rate
$18 per hour
Steel cost
$1.52 per pound
Prepare a flexible budget for 15,000, 19,000, and 23,000...
The ABC Company is one of the largest producers of power tools in the United States....
The ABC
Company is one of the largest producers of power tools in the
United States. The company is preparing to replace its current
product line with the next generation of products: specifically,
three exciting new power tools with the latest state-of-the-art
features. Because of the limited amount of capital available,
management needs to make some difficult choices about how much to
invest in each of these products. Another concern is the effect of
these decisions on the company’s ability...
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