(TMUS) is one of the largest digital wireless service providers in the United States. In a recent...
Question:
(TMUS) is one of the largest digital wireless service providers in the United States. In a recent year, it had 102.1 million subscribers (accounts) that generated service revenue of $50,395 million. Costs and expenses for the year were as follows (in millions): Cost of revenue $11,878 Selling, general, and administrative expenses 18,926 Depreciation and amortization 14,151 Required: Assume that 30% of the cost of revenue and 70% of the selling, general, and administrative expenses are fixed to the number of direct subscribers (accounts). What is T-Mobile's break-even number of accounts, using the data and assumptions given? Round to one decimal place. How much revenue per account would be sufficient for T-Mobile to break even if the number of accounts remained constant? Round to one decimal place.
Financial And Managerial Accounting
ISBN: 9780357714041
16th Edition
Authors: Carl S. Warren, Jefferson P. Jones, William Tayler