Rotelco is one of the largest digital wireless service

Assignment Help Accounting Basics

Reference no: EM13608805

Rotelco is one of the largest digital wireless service providers in the United States. In a recent year, it had approximately 100 direct subscribers that generated revenue of $31,700. Costs and expenses for the year were as follows:

Cost of revenue $13,600
Selling, general, and administrative expenses 8,900
Depreciation 3,500

Assume that 65% of the cost of revenue and 25% 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.

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.

Reference no: EM13608805

Questions Cloud

A pure aluminum conical section with cross sectional : a pure aluminum conical section with cross sectional diameter of d ax12. a 0.5meters12. the small end of the cone is

A steam pipe is covered with 150 cm thick insulating : a steam pipe is covered with 1.50 cm thick insulating material with a thermal conductivity of 0.200

General population is skewed to the right the meand degree : general population is skewed to the right the meand degree of affection is 60 standard deviation is 16. sample 100

Newport manufacturing makes and sells backyard fire pits : newport manufacturing makes and sells backyard fire pits. each fire pit regularly sells for 269. the following cost

Rotelco is one of the largest digital wireless service : rotelco is one of the largest digital wireless service providers in the united states. in a recent year it had

A machine cost 800000 on april 1 2012 its estimated salvage : a machine cost 800000 on april 1 2012. its estimated salvage value is 80000 and its expected life is eight years.

How much revenue per account would be sufficient for : rotelco is one of the largest digital wireless service providers in the united states. in a recent year it had

Determine the horizontal distance between the launching : the track for a racing event was designed so that riders jump off the slope at 30 angle from a height of 5 ft. the

General population is skewed to the right the mean degree : general population is skewed to the right the mean degree of affection is 60 standard deviation is 16. sample 100

User Account

All Pages