 is generated at the building in question) Allocated ring cost per building/MRC (2 buildings) $2,500 Allocated spur cost per building/MRC $1,500 Allocated CO equipment cost per building/MRC Allocated CPE cost per building/MRC Allocated riser costs per building/MRC Allocated network management costs per building/MRC Allocated SGA (= 18% of revenue) $1,260 Allocated operations costs (= 17% of revenue) $1,190 Total costs $8,783 Net profit (loss) ($1,783) Margin % Two 1,000-Mbps customers in a building on the backbone ring Typical total MRC/building (considers one end) $14,000 ($14,000 MRC per customer, but only $7,000 is generated at the building in question) Allocated ring cost per building/MRC (1 building $5,000 equivalent or use WDM) Allocated spur cost per building/MRC $1,500 Allocated CO equipment cost per building/MRC Allocated CPE cost per building/MRC Allocated riser costs per building/MRC Allocated network management costs per building/MRC Allocated SGA (= 18% of revenue) $2,520 Allocated operations costs (= 17% of revenue) $2,380 Total costs $14,340 Net profit (loss) ($340) Margin % Chapter 10 Figure 10-1 Two 10-Mbps Customers/Building Two 10-Mbps customers per $2,000 building. $1,500 $1,000 Figure 10-2 Four 10-Mbps Customers/Building Four 10-Mbps customers per $2,000 building. $1,500 $1,000 Figure 10-3 Two 100-Mbps Customers/Building Two 100-Mbps customers per $2,000 building. $1,500 $1,000 Practical Design and Economic Parameters Figure 10-4 Four 100-Mbps Customers/Building Four 100-Mbps customers per $3,000 building. $2,500 $2,000 $1,500 $1,000 Figure 10-5 One 1,000-Mbps Customers/Building One 1,000-Mbps customer per $3,000 building. $2,500 $2,000 $1,500 $1,000 Figure 10-6 Two 1,000-Mbps Customers/Building Two 1,000-Mbps customers per $6,000 building. $5,000 $4,000 $3,000 $2,000 $1,000 Chapter 10 10.4.2 Run 2: A Breakthrough Technology Where the CPE Cost Is Cut How important is a breakthrough that keeps the cost per building low? Cost per building is the most critical parameter. Our use of $20,000 and $