Homework Answers
Variable cost per subscriber = (28300*75%+17800*30%)/100 = 265.65
Fixed cost = (28300*25%+17800*70%+6800) = 26335
a) Break even unit = Fixed cost/Contribution margin per account = 26335/(615-265.65) = 75
b) Break even unit = Fixed cost/Selling price-Variable cost
100 = 26335/X-265.65
100X-26565 = 26335
100X = 52900
X(Sales revenue per account) = 52900/100 = $529
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