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Executives of Sony Records produced the latest compact disc by Bruce Springsteen titled Great Bands are Alive and Well. The product manager is faced with

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Executives of Sony Records produced the latest compact disc by Bruce Springsteen titled Great Bands are Alive and Well. The product manager is faced with a profitability and launching issue and wondered if he should proceed. Here are his assumptions: CD package and disc costs $1.50 /CD Songwriter's royalty $0.50/CD Royalties paid to Springsteen $1.10/CD Advertising and Promotion Costs $275,000. Studio recording overhead costs $250,000 Retail Selling Price of CD $25.00 Margin required by Retailers 35% Margin required by Wholesalers 17% AD DOLLAR UNIT SALES Calculate: 11. Wholesale Selling Price of CD to retailers Question 12 (1 point) 12. Sony Selling price of CD to wholesalers AM Question 13 (1 point) 13. Contribution per CD for Sony MacBook Pro

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