4 Revenue Models and Unit Economics Online Quiz Questions

A cloud service charges each customer according to the amount of data that customer stores. Which revenue model best describes how the service earns money?

True or false: A subscription is a revenue model, while the price and billing structure determine how that subscription works.

A business calculates the cost of providing its product, then adds a markup to set its price. Which pricing approach is it using?

Which statements accurately describe subscription revenue models? Select all that apply.

A product has monthly fixed costs of $7,200, sells for $45 per unit, and has a variable cost of $21 per unit. Assuming a constant price and variable cost, how many units must be sold per month to break even? Enter the break-even quantity in units.

Which quantities are inputs to the introductory estimate of subscription customer lifetime value (LTV)? Select all that apply.

A subscription customer generates $80 in monthly revenue, has a gross margin of 75%, and is expected to remain for 10 months. Using the introductory LTV estimate, what is the customer's estimated gross-profit LTV?

A service wants a simple fixed charge, but its customers' usage and service costs vary greatly. Which pricing approach matches the desired simplicity while carrying the risk described?

True or false: A short estimated CAC payback period, by itself, proves that the whole business is profitable.

A subscription business estimates an LTV:CAC ratio of 3:1. Explain what this ratio suggests and why it does not, by itself, establish that the business is profitable.

A company sells a device once and also charges a recurring fee for its connected service. Which statement best characterizes this arrangement?

A marketplace earns money by taking a percentage of each sale it helps its customers complete. Which revenue model best describes this arrangement?

A software service wants customer bills to reflect consumption, but customers are concerned that usage-only bills will be difficult to predict. Which billing structure best addresses both goals?

A company learns that customers value its product because it solves a costly, important problem. It sets the price based on that expected benefit rather than simply adding a markup to its costs. Which pricing approach is it using?

A service wants customers with different needs to choose among packages that vary in features and usage limits. Which pricing approach most directly fits this plan?

A price that attracts strong customer interest is necessarily sustainable, even if the business has not compared it with delivery costs, customer acquisition costs, or retention.

A product sells for $\$92$ per unit and has a variable cost of $\$37$ per unit. What is its contribution margin per unit? Enter the amount in dollars.

A subscription customer costs $\$450$ to acquire, generates $\$150$ in monthly revenue, and has a gross margin of $60\%$. Using CAC divided by monthly gross profit per customer, estimate the CAC payback period. Enter the number of months.