2. Sony Pictures is currently trying to decide whether it should obtain the distribution rights to a new unreleased film. If Sony distributes the film directly, its investment in the project would be $250,000. The total market for the fill is estimated to be 100,000 units.

Heres what we know

Cost of Distribution	$150,000
Label Design	$5000
Package Design	$10,000
Advertising	$35,000
Reproduction of Copies (per 1000)	4,000
Manufacture of Labels (per 1000)	500
Royalties per (1,000)	500

Sonys suggested retail price for the film is $20 per unit. The retailer margin is 40% of the retail price

1. What is Sonys contribution and contribution margin for the film

2. What is the unit break even? What is the Dollar Break Even

3. What share of the market would the film have to achieve to earn a 20%

   return on its investment in the first year?