Calculate the Following: 2022 Revenue: $600,000 Net units sold in 2022: 3,000 access points 2022 ending total units: 3,500 access points Monthly revenue per unit (ARPU) = ? Monthly gross margin per unit (AMPU) = ? One time cost per unit (access point and licensing): $400 One time cost for sales compensation per unit: $100 One time cost per unit to install service: $84 Monthly support costs per unit: $1.50 Payback period per unit sold = ? Contract term: 36 months Instructions: Based upon fictitious data points in the above table please calculate: 1. Monthly revenue per unit (ARPU) 2. Monthly Gross Margin per unit ( AMPU) 3. Payback period per unit sold (How long will it take in months to start making profit off of 1 unit sold)? Once calculated explain your findings in a short analysis and recommendations you h
Calculate the Following: 2022 Revenue: $600,000 Net units sold in 2022: 3,000 access points 2022 ending total units: 3,500 access points Monthly revenue per unit (ARPU) = ? Monthly gross margin per unit (AMPU) = ? One time cost per unit (access point and licensing): $400 One time cost for sales compensation per unit: $100 One time cost per unit to install service: $84 Monthly support costs per unit: $1.50 Payback period per unit sold = ? Contract term: 36 months Instructions: Based upon fictitious data points in the above table please calculate: 1. Monthly revenue per unit (ARPU) 2. Monthly Gross Margin per unit ( AMPU) 3. Payback period per unit sold (How long will it take in months to start making profit off of 1 unit sold)? Once calculated explain your findings in a short analysis and recommendations you h
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Calculate the Following:
2022 Revenue: $600,000
Net units sold in 2022: 3,000 access points 2022
ending total units: 3,500 access points
Monthly revenue per unit (ARPU) = ?
Monthly gross margin per unit (AMPU) = ?
One time cost per unit (access point and licensing): $400
One time cost for sales compensation per unit: $100
One time cost per unit to install service: $84
Monthly support costs per unit: $1.50
Payback period per unit sold = ?
Contract term: 36 months
Instructions: Based upon fictitious data points in the above table please calculate:
1. Monthly revenue per unit (ARPU)
2. Monthly Gross Margin per unit ( AMPU)
3. Payback period per unit sold (How long will it take in months to start making profit off of 1 unit sold)?
Once calculated explain your findings in a short analysis and recommendations you have associated with the findings.
Transcribed Image Text:2022 Revenue Net units sold
in 2022
$600,000
1.
2.
3.
3,000 access
points
2022 financial results (Business Wi-Fi)
2022
ending total
units
Monthly
revenue per
unit (ARPU)
One time cost
for Sales
compensation
per unit
3,500
access
points
Monthly
Gross
Margin per
unit (AMPU)
Calculate Calculate
One time
cost per
unit
(Access
point and
Licensing)
$400
$100
One
time
cost
per
unit to
install
service
Monthly Payback
support period per
unit sold
costs per
unit
$84 $1.50
Instructions: Based upon fictitious data points in the above table please calculate:
Calculate
Contract
Term
36
months
Monthly revenue per unit (ARPU)
Monthly Gross Margin per unit (AMPU)
Payback period per unit sold (How long will it take in months to start making profit off of 1 unit sold)?
Once calculated explain your findings in a short analysis and recommendations you have associated with the findings. 3
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education