PQ$6$: Break$-$Even Analysis for a Service Company $($Obj$.3)$

T$-$Mobile US$,$ Inc. $($TMUS$)$ is one of the largest digital wireless service providers in the United States. In a recent year, it had $102\mathrm{.}1$ million subscribers $($accounts$)$ that generated service revenue of $$50,395$ million. Costs and expenses for the year were as follows $($in millions$)$:

Cost of revenue

$$11,878$

Selling, general, and administrative expenses

$18,926$

Depreciation and amortization

$14,151$

Required:

Assume that $30\%$ of the cost of revenue and $70\%$ of the selling, general, and administrative expenses are fixed to the number of direct subscribers $($accounts$).$

What is T$-$Mobile's Break$-$Even number of accounts, using the data and assumptions given? Round to one decimal place $($in millions$).$

How much Revenue per Account would be sufficient for T$-$Mobile to Break$-$Even if the number of accounts remained constant? Round to one decimal place $($in millions$).$

Instructions:

Must submit this $PQ$ using an Excel worksheet. Ten points will be deducted if submitted in any other format.