Tesla sells internet connectivity for its cars for $100 per month by buying the bandwidth from a third-party mobile company for $30 per month per customer and wrapping the service in its own Tesla-developed user interface for an additional cost of $5 per month for each customer. Tesla pays a total of $5,000 per month for one customer service person who answers questions about the service and troubleshoots. Answer the following questions regarding Tesla's connectivity service (ignore taxes).

Again, assume Tesla expects to sell 10,000 connectivity packages per month. What are the total monthly direct costs related to selling connectivity packages?

Answer rating: 100% (QA)

Total direct cost per customer per month Bandwidth cost per customer per month UI development c... View the full answer