Executives of Studio Recordings Inc. produced the lat- est compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the CD. a. CD package b. Songwriters' royalties c. Recording artists' royalties d. Advertising and promotion $1.25/CD $0.35/CD $1.00/CD $275,000 e. Studio Recording Inc.'s overhead f. Selling price to the CD distributor $250,000 $9.00 Calculate the following: 1. Contribution per CD unit 2. Break-even volume in CD units and dollars 3. Net profit if 1 million CDs are sold 4. Necessary CD unit volume to achieve a $200,000 profit
Executives of Studio Recordings Inc. produced the lat- est compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the CD. a. CD package b. Songwriters' royalties c. Recording artists' royalties d. Advertising and promotion $1.25/CD $0.35/CD $1.00/CD $275,000 e. Studio Recording Inc.'s overhead f. Selling price to the CD distributor $250,000 $9.00 Calculate the following: 1. Contribution per CD unit 2. Break-even volume in CD units and dollars 3. Net profit if 1 million CDs are sold 4. Necessary CD unit volume to achieve a $200,000 profit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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