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

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter7: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29BEB: Sales Needed to Earn Target Income Chillmax Company plans to sell 3,500 pairs of shoes at 60 each in...
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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.

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