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