Revenue and cost calculations based on timing of rollout criteria
Posted on 2014-04-15
Please see attached example.
Based on the month that we will rollout our services to particular companies, I need to calculate how much we will be making in revenue and the cost associated with the deployment of hardware. The month of the rollout will be the variable that may change so the revenue and costs all need to be tied to this variable.
For each company, revenue will be ongoing after each rollout. Meaning if we rollout on Month 6 then we will continue our revenue stream on an ongoing monthly basis. Row 26 in the attached spreadsheet will reflect the total revenue for all companies.
The cost is for hardware at rollout and an accrual for ongoing replacement. The cost is $1k per car in the month of rollout plus $750 for every 20 units that have already been deployed. Look at:
Row 7 - Car installs - this identifies how many units will be installed based on the month of rollout
Row 8 - Total # of cars - this is a cumulation of all units installed
Row 27 - this is the cost based on $1k per car in the month of rollout plus $750 for every 20 units
I highlighted in yellow the cells that I would need you to calculate (again based on the variable month of rollout). I manually input the amounts to show what they will need to be.
please let me know if you have any questions.