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
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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.

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
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
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