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Print Item Break-even analysis Media outlets such as ESPN and FOX Sports often have websites that provide in-depth coverage of news and events. Portions of these webs who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to intro Assume that during a recent fiscal year, ESPN.com spent $4,200,000 on a promotional campaign for the ESPN.com websites that offered tw new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service. (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 14 months $10.00 $5.00

Print Item Break-even analysis Media outlets such as ESPN and FOX Sports often have websites that provide in-depth coverage of news and events. Portions of these webs who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to intro Assume that during a recent fiscal year, ESPN.com spent $4,200,000 on a promotional campaign for the ESPN.com websites that offered tw new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service. (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 14 months $10.00 $5.00

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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eBook Print Item Break-even analysis Media outlets such as ESPN and FOX Sports often have websites that provide in-depth coverage of news and events. Portions of these websi who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to introd Assume that during a recent fiscal year, ESPN.com spent $4,200,000 on a promotional campaign for the ESPN.com websites that offered twe new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 14 months Revenue per month per customer subscription $10.00 Variable cost per month per customer subscription $5.00 Determine the number of new customer accounts needed to break even on the cost of the promotional campaign. In forming your answer.
Transcribed Image Text:eBook Print Item Break-even analysis Media outlets such as ESPN and FOX Sports often have websites that provide in-depth coverage of news and events. Portions of these websi who pay a monthly subscription to gain access to exclusive news and commentary. These websites typically offer a free trial period to introd Assume that during a recent fiscal year, ESPN.com spent $4,200,000 on a promotional campaign for the ESPN.com websites that offered twe new subscribers. In addition, assume the following information: Number of months an average new customer stays with the service (including the two free months) 14 months Revenue per month per customer subscription $10.00 Variable cost per month per customer subscription $5.00 Determine the number of new customer accounts needed to break even on the cost of the promotional campaign. In forming your answer.
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