Question
The following 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
The following 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?
A. 75,000
B. 15,625
C. 92,500
D. None of the above
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