How is accessory revenue calculated to find ACC ARPU?

The process of calculating accessory revenue to determine the Accessory Average Revenue Per User (ACC ARPU) involves an important relationship between the core customer base and accessory sales. The correct method to arrive at ACC ARPU is to take the total accessory revenue and divide it by the total number of core customers or the core subscriber base.

This calculation provides a clear insight into how much accessory revenue is generated for each active core customer. By incorporating the overall accessory revenue along with the core number, it allows for an accurate representation of the revenue generated from accessories in relation to the number of users they pertain to. This metric is key for companies like Verizon as it gives them a clearer picture of customer engagement and revenue generation beyond just subscription fees.

The other options do not accurately reflect the standard method for calculating ACC ARPU. For instance, focusing solely on new customer data does not consider the total active customer base which provides a more comprehensive view when assessing accessory revenue. Similarly, accessory targets multiplied by the core success rate or averaging all monthly sales lacks the necessary context of relating accessory sales directly to the existing user base—essential for a proper ARPU calculation.