Question
he following revenue and cost information pertains to the new CD: CD package and disc (direct material and labor): $2.50/CD Songwriters royalties: $0.70/CD Recording Artists
he following revenue and cost information pertains to the new CD:
CD package and disc (direct material and labor): $2.50/CD
Songwriters royalties: $0.70/CD
Recording Artists royalties: $2.00/CD
Advertising & promotion: $380,000
Sony Records Inc,s Overhead: $300,000
Selling price to CD Distributor: $10.00
2) If they sold 100,000 CDs and decided they wanted to invest in a $75,000 advertising campaign in the hopes of generating more sales, how many more CDs would they have to sell to maintain their current contribution to the organization?
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Hospitality Management Accounting
Authors: Michael M. Coltman, Martin G. Jagels, Martin Jagels
7th Edition
0471348848, 978-0471348849
