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Exam Certified CPQ Specialist topic 1 question 185 discussion

Actual exam question from Salesforce's Certified CPQ Specialist
Question #: 185
Topic #: 1
[All Certified CPQ Specialist Questions]

Universal Containers sells Subscription Products with prorated pricing dependent on the total Subscription Term as follows:
Product A is configured to have a 36 Month Subscription Term (SBQQ__SubscriptionTerm__c = 36) with a List Unit Price of $36,000.
Product B is configured to have a 1 Month Subscription Term (SBQQ__SubscriptionTerm__c - 1) with a List Unit Price of $2,000.
Each Quote Line has a Quantity of 15. The Quote has a Subscription Term of 18 Months without a discount applied.
What is the expected Prorate Multiplier and resulting Net Total for both Quote Lines?

  • A. • Product A Prorate Multiplier - 0.5
    • Product A Net Total = $270,000
    • Product B Prorate Multiplier - 18
    • Product B Net Total = $540,000
  • B. • Product A Prorate Multiplier = 0.5
    • Product A Net Total - $27,000
    • Product B Prorate Multiplier = 18
    • Product B Net Total - $36,000
  • C. • Product A Prorate Multiplier - 0.5
    • Product A Net Total = $270,000
    • Product B Prorate Multiplier - 18
    • Product B Net Total = $360,000
  • D. • Product A Prorate Multiplier = l
    • Product A Net Total - $27,000
    • Product B Prorate Multiplier = 1
    • Product B Net Total - $36,000
Show Suggested Answer Hide Answer
Suggested Answer: A 🗳️
by MJ89 at Dec. 12, 2022, 8:02 p.m.

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MJ89
Highly Voted 1 year, 11 months ago
Selected Answer: A
Answer A
upvoted 8 times
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dee3619
Most Recent 9 months ago
Selected Answer: A
Prorate Multiplier = (Subscription Term of Quote / Subscription Term of Product) Net Total = (Quantity * List Unit Price * Prorate Multiplier) Let's calculate for both Product A and Product B using the given information: For Product A: Prorate Multiplier = 18 / 36 = 0.5 Net Total = (15 * $36,000 * 0.5) = $270,000 For Product B: Prorate Multiplier = 18 / 1 = 18 Net Total = (15 * $2,000 * 18) = $540,000
upvoted 2 times
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nibbler
1 year, 7 months ago
Selected Answer: A
its A . Why ? Prorate 0,5 for Product A and 18 for B Its asked for net Total so considering quantity of 15 its 18*2000USD*15 = 540k
upvoted 2 times
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Joel31113
1 year, 8 months ago
Answer is A
upvoted 2 times
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Joel31113
1 year, 8 months ago
Selected Answer: C
Answer is C pro rate multiple is calculated by Quote Sub Term divided by Product Sub Term So A= 0.5 and B = 18 Multiply them both respectively by their List Unit Prices and you get 270,000 and 36,000. NB: Note there is a typo on C) - it should be 36,000 and not 360,000.
upvoted 1 times
Joel31113
1 year, 7 months ago
Ignore this.
upvoted 2 times
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Joel31113
1 year, 8 months ago
https://milomassimo.com/Salesforce-CPQ-Subscription-Terms.html - further info. Final section of this page explains how to calculate.
upvoted 1 times
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[Removed]
1 year, 10 months ago
How do you work this out?
upvoted 1 times
...

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