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Break-even analysis for a service company Rotelco is one of the largest digital wireless service providers...

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Accounting

Break-even analysis for a service company Rotelco is one of thelargest digital wireless service providers in the United States. Ina recent year, it had approximately 100 direct subscribers(accounts) that generated revenue of $36,300. Costs and expensesfor the year were as follows: Cost of revenue $16,300 Selling,general, and administrative expenses 11,600 Depreciation 4,000Assume that 60% of the cost of revenue and 30% of the selling,general, and administrative expenses are variable to the number ofdirect subscribers (accounts). In part (a) and (b), round allinterim calculations and final answers to one decimal place. a.What is Rotelco's break-even number of accounts, using the data andassumptions above? Round to the nearest whole number. accounts b.How much revenue per account would be sufficient for Rotelco tobreak even if the number of accounts remained constant? Round tothe nearest dollar. $ per account

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