These are sample practice MCQs created for exam preparation. These are NOT official exam questions.
PRICING STRUCTURE: Basic $29/mo (45% of customers), Professional $79/mo (38% of customers), Enterprise $199/mo (17% of customers). SUBSCRIBER DATA: Total subscribers 12,400. CHURN REPORT: Monthly churn rate is 3.5%. What is the monthly recurring revenue lost to churn?
Question:
PRICING STRUCTURE: Basic $29/mo (45% of customers), Professional $79/mo (38% of customers), Enterprise $199/mo (17% of customers). SUBSCRIBER DATA: Total subscribers 12,400. CHURN REPORT: Monthly churn rate is 3.5%. What is the monthly recurring revenue lost to churn?
PRICING STRUCTURE: Basic $29/mo (45% of customers), Professional $79/mo (38% of customers), Enterprise $199/mo (17% of customers). SUBSCRIBER DATA: Total subscribers 12,400. CHURN REPORT: Monthly churn rate is 3.5%. What is the monthly recurring revenue lost to churn?
Options
Answer: (B) $33,374
Explanation:
Average revenue per customer: (0.45 × $29) + (0.38 × $79) + (0.17 × $199) = $13.05 + $30.02 + $33.83 = $76.90. Churned customers = 12,400 × 0.035 = 434. Lost MRR = 434 × $76.90 = $33,374.60.
Explanation:
Average revenue per customer: (0.45 × $29) + (0.38 × $79) + (0.17 × $199) = $13.05 + $30.02 + $33.83 = $76.90. Churned customers = 12,400 × 0.035 = 434. Lost MRR = 434 × $76.90 = $33,374.60.
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