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Jingle Bells Studio produced a hit for this years Christmas. The cost information is listed below: CD package and disc (direct material and labor) $1.25/CD
Jingle Bells Studio produced a hit for this years Christmas. The cost information is listed below:
CD package and disc (direct material and labor) $1.25/CD
Songwriters royalties $ 0.35/CD
Recording artists royalties $1.00/CD
Advertising and promotion $275,000
Studio Recordings, Inc.s overhead $250,000
Selling Price per CD $9.00
Calculate the following:
- Contribution (also referred to as margin) in $ value and as a percentage
- Breakeven in volume
- Net profit if 1 million CDs are sold?
- Necessary CD unit volume to achieve a $200,000 profit.
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