Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Is this ROI correct based on percentage of units sold increase and percentage revenue increase? How to calculate ROI in 12 month, 24 months and
Is this ROI correct based on percentage of units sold increase and percentage revenue increase?
How to calculate ROI in 12 month, 24 months and 36 months? (based on 10% units sold increase and 15% service revenue increase when current units sold = 1,000 and current service revenue = 100,000)
Cost units sold increase 10% service revenue increase 15% 12 month 24 month 36 month 1500 start up 1500 start up 1500 start up 3,000/month 3,000/month 3,000/month 36000 + 1500 72000 + 1500 108000 + 1500 37500 73500 109500 units sold increase current units sold: 1000 100 year 1 * compounded annually 15000 year 1 *compounded annually service revenue increase current service revenue: 100,000 year total units sold total service revenue year 1 1100 115,000 year 2 1210 year 3 1331 132250 152087.5 174900.625 201135.7188 year 4 1464.1 1610.51 year 5 ROI 12 month 24 month 44115000 10.01246883 36 month 92647250 15.52026185 146039337.5 21.39595802 Cost units sold increase 10% service revenue increase 15% 12 month 24 month 36 month 1500 start up 1500 start up 1500 start up 3,000/month 3,000/month 3,000/month 36000 + 1500 72000 + 1500 108000 + 1500 37500 73500 109500 units sold increase current units sold: 1000 100 year 1 * compounded annually 15000 year 1 *compounded annually service revenue increase current service revenue: 100,000 year total units sold total service revenue year 1 1100 115,000 year 2 1210 year 3 1331 132250 152087.5 174900.625 201135.7188 year 4 1464.1 1610.51 year 5 ROI 12 month 24 month 44115000 10.01246883 36 month 92647250 15.52026185 146039337.5 21.39595802Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started