The growth in subscribers is the result of the hiring of additional sales personnel.

The number of su Show more Line 1 The subscriber numbers are already posted they dont change it was given. The number of subscribers enrolled in the beginning months is the result of the industry contacts of current management. The growth in subscribers is the result of the hiring of additional sales personnel. The number of subscribers in each category is relatively small compared to the total market. For example there are a total of 6097 hospitals in the US (Source: US Census Bureau Statistical Abstract of the United States 1999). The total number of subscribers at year-end is 1005. Monthly revenues for year 1 are shown in the accompanying spreadsheet. Lines 2-4 The company has estimated that the total volume of transactions through the web site starts at $50000 the first month and then increases by 20 percent per month for 3 months and then 30 percent per month for 5 months. In order to be highly competitive with Neoforma and Medibuy the company will charge a commission rate of only 8.5 percent compared to the 20+ percent charged by these two companies. The transaction volume is then multiplied by the commission rate to calculate the commission revenue earned by the company. Commission revenue for the first will be modest as Meddist.com builds its brand awareness. Line 5 Service revenue consists of fees and commissions received from service companies for referring buyers on the companys web site to these companies to have their equipment repaired and maintained. The projections assume that 10 percent of the total transactions result in service fees and a commission of 10 percent is earned by Meddist.com each month. Line 6 Financing referral fees are earned when Meddist.com refers a buyer to a medical equipment financing company. The projections assume that 15 percent of the total transactions result in financing fees and a commission of 4 percent is earned by Meddist.com each month. Line 7 Total revenue consists of subscriber revenue commission revenue service revenue and financing referral revenue (lines 1 4 5 6). TOTAL REVENUE SHOULD BE $1384696 HERE IS WHAT I CAME UP WITH BUT AS YOU CAN SEE MY NUMBERS ARE OFF SOMEWHERE AND I CANT FIGURE IT OUT. HELP PLEASE. 1 Subscriber revenue 25000 46250 72500 98750 130000 163750 202500 238750 277500 1255000 2 Web site transaction volume 50000 60000 60000 60000 65000 65000 65000 65000 65000 65000 65000 65000 750000 3 Commission 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 8.50% 4 Commission revenue 4250 5100 5100 5100 5525 5525 5525 5525 5525 5525 5525 5525 63750 5 Service revenue 42.5 51 51 301 517.75 780.25 1042.75 1355.25 1692.75 2080.25 2442.75 2830.25 13188 6 Financing referral revenue 171.72 206.04 206.04 1216.04 2091.72 3152.2 4212.72 5475.2 6838.72 8404.2 9868.72 11434.2 53278 7 Total Revenue 4464 5357 5357 31617 54384 81957 109530 142355 177806 218509 256586 297289 1385215

 

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