A software company has spent $1,2 million to develop an app. Individual subscribers pay $10/month for...

 

 

 

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A software company has spent $1,2 million to develop an app. Individual subscribers pay $10/month for the service. The number of subscribers for the first nine months of the year has been as follows: Month January February March April May June July August September New subscribers who left) 5,000 10,000 25,000 35,000 50,000 90,000 30,000 15,000 Churn (subscribers 10,000 0 0 2,000 5,000 5,000 9,000 15,000 25,000 15,000 Net number of Cumulative subscribers revenue, $ 5,000 15,000 38,000 ... Cumulative Profit/ expenses, $ Loss, $ a) What is the total revenue of the firm for the first nine months? b) assuming an average monthly expense of $100,000 (in addition to the up front investment of $1,2 million), what is the gross profit or loss of the firm for the first nine months? c) In which month does the company break even (= cumulative revenue is >= cumulative expenses)? A software company has spent $1,2 million to develop an app. Individual subscribers pay $10/month for the service. The number of subscribers for the first nine months of the year has been as follows: Month January February March April May June July August September New subscribers who left) 5,000 10,000 25,000 35,000 50,000 90,000 30,000 15,000 Churn (subscribers 10,000 0 0 2,000 5,000 5,000 9,000 15,000 25,000 15,000 Net number of Cumulative subscribers revenue, $ 5,000 15,000 38,000 ... Cumulative Profit/ expenses, $ Loss, $ a) What is the total revenue of the firm for the first nine months? b) assuming an average monthly expense of $100,000 (in addition to the up front investment of $1,2 million), what is the gross profit or loss of the firm for the first nine months? c) In which month does the company break even (= cumulative revenue is >= cumulative expenses)?

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