4. Finance

Unit Economics — Quiz

Test your understanding of unit economics with 5 practice questions.

Practice Questions

Question 1

Which statement best distinguishes gross margin from contribution margin?

Question 2

If a product sells for \$100 with a variable cost of \$60 and fixed costs are \50{,}000 per year, what is the break-even revenue?

Question 3

If forecast sales are \200{,}000 and break-even sales are \150{,}000, what is the margin of safety percentage?

Question 4

A subscription service charges \20/month, has a gross margin of 70%, and an average customer lifetime of 18 months. What is the customer lifetime value (LTV)?

Question 5

If customer acquisition cost (CAC) is \120 and monthly contribution margin per customer is \$30, what is the CAC payback period in months?