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ILUW ASSUMING YOU ARE TRYING TO DETERMINE SONY'S RESULTS. Executives of Sony Records produced th are Alive and well. The product manager is faced w ony Records produced the latest compact disc by Bruce Springsteen titled Great Bands if he should proceed. The product manager is faced with a profitability and launching issue and wondered 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 Retail Selling Price of CD Margin required by Retailers Margin required by Wholesalers Calculate: $250,000 $25.00 35% 17% 11. Wholesale Selling Price of CD to retailers 12. Sony Selling price of CD to wholesalers 13. Contribution per CD for Sony 14. Contribution margin per CD for Sony 15. Breakeven Unit Sales required by Sony 16. Breakeven Dollar Sales by Sony 17. Profit if One Million units are sold by Sony 18. How much would Sony need to sell in dollars to cover every S1 additional investment in advertising? If the company wanted to make $200,000 in profit: 19. How many Units need to be sold by Sony? 20. How much in CD Dollar Sales by Sony must be sold? ILUW ASSUMING YOU ARE TRYING TO DETERMINE SONY'S RESULTS. Executives of Sony Records produced th are Alive and well. The product manager is faced w ony Records produced the latest compact disc by Bruce Springsteen titled Great Bands if he should proceed. The product manager is faced with a profitability and launching issue and wondered 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 Retail Selling Price of CD Margin required by Retailers Margin required by Wholesalers Calculate: $250,000 $25.00 35% 17% 11. Wholesale Selling Price of CD to retailers 12. Sony Selling price of CD to wholesalers 13. Contribution per CD for Sony 14. Contribution margin per CD for Sony 15. Breakeven Unit Sales required by Sony 16. Breakeven Dollar Sales by Sony 17. Profit if One Million units are sold by Sony 18. How much would Sony need to sell in dollars to cover every S1 additional investment in advertising? If the company wanted to make $200,000 in profit: 19. How many Units need to be sold by Sony? 20. How much in CD Dollar Sales by Sony must be sold