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 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. What is Rotelco's break-even number of
accounts, using the data and assumptions above? Round to the
nearest whole number.
million 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.
$ million per account
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Rotelco is one of the largest digital wireless service providers in the United States. In a...
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Costs and expenses for the year were as follows: Cost of revenue
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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
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Depreciation
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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
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Cost of revenue
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Selling, general, and administrative expenses
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Depreciation
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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).
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Selling, general, and administrative expenses
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