Answer :
The customer who purchases 10 Microsoft 365 Business Premium licenses at $22 each per month, for a full year, then 6 months later decides they only need 5 licenses for the remainder of the year, would pay a total charge of $1,980 with a credit of $660 for the year.
How are the total charge and credit computed?
The total charge the customer will pay is based on the difference between the total charge for the year and the prorated charge of credit for non-usage.
The charge per month for Microsoft 365 = $22
The charge per month for 10 Microsoft 365 = $220 ($22 x 10)
The charge for 1 year for one Microsoft 365 = $264 (22 x 12)
The charge for 6 months for 10 Microsoft 365 = $1,320 ($220 x 6)
The charge for 12 months for 10 Microsoft 365 = $2,640 (220 x 12)
The prorated charge for 6 months for 5 Microsoft 365 returned = $660 ($2,640 x 5/10 x 6/12)
The initial total charge for the year = $2,640
The total credit for the year = $660
The total charge for the year = $1,980 ($2,640 - $660)
Thus, the customer will pay $1,980 after receiving a prorated credit for 5 returned licenses worth $660.
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