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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.
Answer & Explanation
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