1 executives of studio recordings inc produced the latest, Ask an Expert

Economics

1. Executives of Studio Recordings, Inc. produced the latest CD by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD:

CD package and disc (direct material & labor) $1.25 per CD Songwriter’s royalties $0.35 per CD Recording artists’ royalties $1.00 per CD Advertising & promotion $275,000 Selling price to CD distributor $9.00

Calculate the following:

a. Contribution per CD unit

b. Breakeven volume in CD units

c. Breakeven volume in dollars

d. Net profit if 1 million CDs are sold

e. The number of CD units that must be sold to achieve a $200,000 profit

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91707635

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