Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2 1 pts Allied Games is developing a new game app. Allied expects to sell the game for $4.50 per download. The Part 2: CVP

2 1 pts Allied Games is developing a new game app. Allied expects to sell the game for $4.50 per download. The Part 2: CVP Analysis cost accountant has provided the following estimates for development, marketing, commissions, and royalty costs. Estimated Cost Code programming Testing (reviews, field testing, reprogramming) Depreciation on technical equipment Administrative Marketing $ 68,000 55,000 11,000 13,000 50,000 Sales Team Commissions (3% of selling price) 40,500 Distribution Commissions (25% of selling price) 337,500 Game Designer Royalties (12% of selling price) 162,000 $737,000 Total Costs at Production of 300,000 Copies The only variable costs are sales team commissions, distribution commissions, and the game designer royalties. How many downloads must Allied Games sell in order to generate operating earnings of 25% of sales revenue? (Round up your answer to the nearest whole download.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management Accounting A Decision Emphasis

Authors: Don T. DeCoster, Eldon L. Schafer, Mary T. Ziebell

4th Edition

0471637130, 978-0471637134

More Books

Students also viewed these Accounting questions

Question

=+ If expertise is high, should the audience be reminded of this?

Answered: 1 week ago

Question

2. Identify issues/causes for the apparent conflict.

Answered: 1 week ago