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Break-Even Analysis Media outlets often have web sites that provide in-depth coverage of news and events. Portions of these w

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Answer #1

Unit Contribution margin = Unit Selling price – Unit Variable cost

= 16 - 5

= $11 per subscription per month

Subscription earning period per customer = 18 months

Break even point (units) = Fixed cost/Contribution margin per unit

= 1,387,440/(11 x 18)

= 1,387,440/198

= 7,007

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