Please answer ex 19 16 EX 19-16 Break-even analysis Sprint Nextel is one of the largest digital
wireless service providers in the United States. In a recent year, it had approximately 33.3
million direct subscribers (accounts) that generated revenue of $32,563 million. Costs and
expenses for the year were as follows (in millions): OBJ. 3 Cost of revenue Selling, general, and
administrative expenses Depreciation $17,492 9,418 5,074 (Continued)
Solution
Statement showing Break even Analysis (in millions) Particulars Amount Sales Revenue
32,563.00 Variable Costs: Cost of revenue 13,119.00 Selling general and Admin
Exp 2,354.50 Total Variable costs 15,473.50 Contribution(Sales-VC)
17,089.50 Cont per unit(Total cont/33.3) 513.20 Fixed Costs: Cost of revenue
4,373.00 Selling general and Admin Exp 7,063.50 Depreciation
5,074.00 Total Fixed Costs 16,510.50 a) BEP =FC/cont per unit = 16510.50/513.20
32.17 b) Total Costs = FC+Variable 31,984.00 Existing number of
Accounts 33.30 Revenue per Account to break even at existing Accounts
960.48.
Please answer ex 19 16 EX 19-16 Break-even analysis Sprint Nextel is.pdf
1. Please answer ex 19 16 EX 19-16 Break-even analysis Sprint Nextel is one of the largest digital
wireless service providers in the United States. In a recent year, it had approximately 33.3
million direct subscribers (accounts) that generated revenue of $32,563 million. Costs and
expenses for the year were as follows (in millions): OBJ. 3 Cost of revenue Selling, general, and
administrative expenses Depreciation $17,492 9,418 5,074 (Continued)
Solution
Statement showing Break even Analysis (in millions) Particulars Amount Sales Revenue
32,563.00 Variable Costs: Cost of revenue 13,119.00 Selling general and Admin
Exp 2,354.50 Total Variable costs 15,473.50 Contribution(Sales-VC)
17,089.50 Cont per unit(Total cont/33.3) 513.20 Fixed Costs: Cost of revenue
4,373.00 Selling general and Admin Exp 7,063.50 Depreciation
5,074.00 Total Fixed Costs 16,510.50 a) BEP =FC/cont per unit = 16510.50/513.20
32.17 b) Total Costs = FC+Variable 31,984.00 Existing number of
Accounts 33.30 Revenue per Account to break even at existing Accounts
960.48
