Break$-$Even Analysis

Media outlets such as ESPN and Fex Sports offen have web sites that provide is$-$depre coverage el news and eventa. Portions of these web sites are restricted to members who pay a monthly sulteofocion to pain access to excluive news and commentary. These web sites typicaly offer a free tral period to introbuce wheers to the web site. Assume that during a recent fiscal year,

ESPN.com spent $$4,079,350$ on a promotional campaign for is with site, offering twa free months of service for new subscribers. In addition, assume the following informanon:

Number of months an average new eustomer staps with the service

$($including the time free montha$)$

$27$ morths

Revenue per month per customer subscription

$122$

Yerishle cost per moneth per costomer subscription

$57$

Determine the number of new customer accounts needed to break eveh en the cail al the promotional campaign. in forming your answer, $(1)$ treat the cost of the promotional campaign as a fased cail and $(2)$ beat the revenue less variable cost per account for the subscription period as the und conterburion marpen.

$$ X accounts