Do Exercise 21-15 on page 1060. Show work. Label calculations. Discuss results.

EX 21-15 Break-even analysis Media outlets such as ESPN and Fox Sports often have websites that provide i erage of news and events. Portions of these websites are restricted to members a monthly subscription to gain access to exclusive news and commentary. Th typically offer a free trial period to introduce viewers to the site. Assume that d recent fiscal year, ESPN.com spent $4,200,000 .com website that offered two free months of service for new subscribers. In assume the following information: OBL 3 n-depth cov- O pay during a on a promotional campaign for the ESPN addition, who ese websit Number of months an average new customer stays with the service 14 months $10.00 $5.00 (including the two free months) Revenue per month per customer subscription Variable cost per month per customer subscription 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 sbscription period as the unit contribution margin