Question: Without ignoring the variable costs, calculate a) the ARPU and b) the total user base needed to break even over a year if its Fixed

Without ignoring the variable costs, calculate a) the ARPU and b) the total user base needed to break even over a year if its Fixed Costs are $500 million per year. Conversion Rate is 5%. Average Cost to support a Free User is $10 per year. Average cost to support a Paying User is $100 per year. Average Revenue per paying User is $690 per Year

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!