Q4/A cell phone company has a fixed cost of $1500000 per month and a variable cost of $22 per month per subscriber. The company charges $38.95 per month to its cell phone customers. a. What is the breakeven point for this company? b. The company currently has 70000 subscribers and proposes to raise its monthly fees to S49.95 to cover add-on features such as text messaging, song downloads, game playing, and video watching. What is the new breakeven point if the variable cost increases to $25 per customer per month? c. If 10000 subscribers will drop their service because of the monthly fee increase in Part (b), will the company still be profitable?

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