Question
CD package and disc (direct material and labor) = 0.29 Songwriters' royalties = 0.05 Recording artists' royalties = 1.15 Advertising and promotion =199000 Studio Recordings,
- CD package and disc (direct material and labor) = 0.29
- Songwriters' royalties = 0.05
- Recording artists' royalties = 1.15
- Advertising and promotion =199000
- Studio Recordings, Inc., overhead = $275,000
- Selling price to CD distributor = 1.99
To find Break-even volume in CD units and dollars I did this: BEU=TFC/CMU 1) TFC= 199000+275000=474000 2) BEU= 474000/50=9480
BE$=TFC/CM% 1)CM%=(SPU-TVC)/SPU=CMU/SPU CM%=(1.99-1.49)/1.99=0.5/1.99=25%2) BE$=474000/25=18960
Are my steps and both answers correct?
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Financial Accounting Fundamentals
Authors: John J. Wild
8th Edition
1260728609, 9781260728606
