CengageNOWv2 Online teaching and learning resource from Cengage Learning /takeAssignment/takeAssignmentMain.do?invoker =&takeAssignmentSessionLocator=&inprog... A eBook 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 $3,033,380 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 25 months including the two free 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. X accounts Feedback Check My Work Fixed costs divided by the unit contribution margin equals break-even sales. Check My Work 1 more Check My Work uses remaining Next O L WE 99% 19OF ~0 1x ( 11/19 6:5 OF9 De 2F11 F12 PrtSc Insert Delete 14 8 9 Backspace Num O P Home K L Enter A M Shift PgUp End Alt Ctrl O Home Pgon End