Question
Executives of Studio Recordings, inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine.Moonshine. The Following cost information pertains. to the new
Executives of Studio Recordings, inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine.Moonshine. The Following cost information pertains. to the new cd:
CD Package and Disc $1.25/cd
Songwriters Royalties $0.35/cd
Recording Artists Royalties $1.00/cd
Ad and Promotion $275,000
Studio Recording Inc Overhead $250,000
Selling Price to CD Distributor $9.00
Calculate the following
a. Contribution per CD unit
b. Break-even volume in CD unfits and dollars
c Net profit if 1 million CDs are sold
d. Necessary Cd unit volume to achieve a $200,000 profit
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