Review the problem of rotelco

Reference no: EM132213228

Question: 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).

Reference no: EM132213228

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