700-805 Exam Dumps | What is the ATR on a $10, 000 one year recuring revenue contract?

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Question 15/23

What is the ATR on a $10, 000 one year recuring revenue contract?

A. $10,000

B. 10% of $10,000

C. $10,000 divided by 12

D. $1,200

Correct Answer: A

ATR stands for Annualized Total Revenue, which is a metric that measures the total revenue generated by a customer contract over a 12-month period. ATR is calculated by multiplying the monthly recurring revenue (MRR) by 12. For example, if a customer pays $100 per month for a service, the ATR is $100 x 12 = $1,200. Therefore, the ATR on a $10,000 one year recurring revenue contract is simply $10,000, since the MRR is already $10,000. ATR is useful for comparing the revenue potential of different contracts with different billing cycles or durations

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