Break$-$Even Analysis

Media outlets such as ISPN 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.con spent $$3,460,990$ on a promotional campaign for its web site, offering two free months of service for new subscribers. In addation, assume the following information:

Number of months an average new customer stays with the service

$($including the two free months$)$

$19$ moniths

Bayenuie ner month por customer subletiption

$$31$

Vanable cost per month per customer subscription

$$10$

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

$5$ X accounts