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Revenue calculation

 

Company X offers a monthly subscription at a cost of $10/month. Company X made a deal with company Y to send them 1,000 customers each month for a cost of $13/customer paid to company Y. Additionally, company X is offering all customers coming from company Y the first month for free. So, each month, company X will be gaining 1,000 customers for the cost of $13/customer.

1. What is the monthly revenue and profit for company X factoring in the first month free trial? (Break down the revenue and profit for each month). 2. What’s the total revenue and profit for company X for the first year?

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