Break$-$Even Analysis

Media outlets such as ESPN and Fox Sports often have web sites that provide in$-$depth coverage of news and events. Portions of these web sites are restricted to members who pay a monthly subscription to gain access to exclusive news and commentary. These web sites typically offer a free trial period to introduce viewers to the web site. Assume that during a recent fiscal year, ESPN.com spent $$1,640,840$ on a promotional campaign for its web site, offering two free months of service for new subscribers. In addition, assume the following information:

$$Number of months an average new customer stays with the service$($including the two free months$)20$months $$Revenue per month per customer subscription $$23$Variable cost per month per customer subscription $$8$

Determine the number of new customer accounts needed to break even on the cost of the promotional campaign. In forming your answer, $(1)$ treat the cost of the promotional campaign as a fixed cost, and $(2)$ treat the revenue less variable cost per account for the subscription period as the unit contribution margin.