Sprint Corporation (S) is one of the largest digital wireless service providers in the United States.In a recent year, it had approximately 60 million direct subscribers (accounts) that generated revenueof $33,347 million. Costs and expenses for the year were as follows (in millions):Cost of revenue $14,958Selling, general, and administrative expenses 7,994Depreciation and amortization 8,150 Assume that 30% of the cost of revenue and 70% of the selling, general, and administrative expensesare fixed to the number of direct subscribers (accounts).a. What is Sprint’s break-even number of accounts, using the data and assumptions given? Roundto one decimal place.b. How much revenue per account would be sufficient for Sprint to break even if the number ofaccounts remained constant? Round to one decimal place.

Sprint Corporation (S) is one of the largest digital wireless service providers in the United States.In a recent year, it had approximately 60 million direct subscribers (accounts) that generated revenueof $33,347 million. Costs and expenses for the year were as follows (in millions):Cost of revenue $14,958Selling, general, and administrative expenses 7,994Depreciation and amortization 8,150 Assume that 30% of the cost of revenue and 70% of the selling, general, and administrative expensesare fixed to the number of direct subscribers (accounts).a. What is Sprint’s break-even number of accounts, using the data and assumptions given? Roundto one decimal place.b. How much revenue per account would be sufficient for Sprint to break even if the number ofaccounts remained constant? Round to one decimal place.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 5EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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