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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.)
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