You are considering introducing a new deluxe software-as-a-service (SaaS) at your startup firm. You estimate that you could sell 500 subscriptions at a yearly price of $12,000. Half of those sales would be to existing customers who would have bought your current 'basic' offering, which retails for $7,000 per year.

To support the deluxe service you'll need 1 more software engineer (yearly salary = $150,000) and 3 more customer support employees (yearly salary = $50,000). What is the yearly incremental cash flow?

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Answer Step by Step Explanation Yearly incremental cash flow sale o... View the full answer