Problem Situation: MVM Corporation seeks to partner with another company by letting them use and sell our software platform as a service, white labeled, in exchange for a revenue share. Data Price per customer 40,000 Revenue share (to us) 40% Total new customers 3 in first year, then 25 in year 2, then 100 in year 3, then 175 in year 4. Support rep cost per account 2,000 Hosting cost per account 500 New office for whitelabel team (annual) 75,000 Overhead payroll for whitelabel team (annual) 600,000 Capex buildout of whitelabeling platform 750,000 Find: (1) Revenue (2) COGS (3) Gross Profit (4) Gross Profit margin (5) Operating expenses (6) Operating income Assumptions: (1) Taxes 35% (2) Useful life of CAPEX 4 years
Problem Situation: MVM Corporation seeks to partner with another company by letting them use and sell our software platform as a service, white labeled, in exchange for a revenue share. Data Price per customer 40,000 Revenue share (to us) 40% Total new customers 3 in first year, then 25 in year 2, then 100 in year 3, then 175 in year 4. Support rep cost per account 2,000 Hosting cost per account 500 New office for whitelabel team (annual) 75,000 Overhead payroll for whitelabel team (annual) 600,000 Capex buildout of whitelabeling platform 750,000 Find: (1) Revenue (2) COGS (3) Gross Profit (4) Gross Profit margin (5) Operating expenses (6) Operating income Assumptions: (1) Taxes 35% (2) Useful life of CAPEX 4 years
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
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Problem Situation: MVM Corporation seeks to partner with another company by letting them use and sell our software platform as a service, white labeled, in exchange for a revenue share.
Data | ||
Price per customer | 40,000 | |
Revenue share (to us) | 40% | |
Total new customers 3 in first year, then 25 in year 2, then 100 in year 3, then 175 in year 4. | ||
Support rep cost per account | 2,000 | |
Hosting cost per account | 500 | |
New office for whitelabel team (annual) | 75,000 | |
600,000 | ||
Capex buildout of whitelabeling platform | 750,000 |
Find: |
(1) Revenue |
(2) COGS |
(3) Gross Profit |
(4) Gross Profit margin |
(5) Operating expenses |
(6) Operating income |
Assumptions: |
(1) Taxes 35% |
(2) Useful life of CAPEX 4 years |
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