The following three questions refer to Sony Records, Inc. Executives of the company are re- releasing Michael Jackson's Thriller CD. The following cost and revenue 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 of CD: $10.00 Question 1: What is the per unit gross marketing contribution? 35% None of these 52% 48%

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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The following three questions refer to Sony Records, Inc. Executives of the company are re-
releasing Michael Jackson's Thriller CD.
The following cost and revenue 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 of CD:
$10.00
Question 1: What is the per unit gross marketing contribution?
35%
None of these
52%
48%
Transcribed Image Text:The following three questions refer to Sony Records, Inc. Executives of the company are re- releasing Michael Jackson's Thriller CD. The following cost and revenue 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 of CD: $10.00 Question 1: What is the per unit gross marketing contribution? 35% None of these 52% 48%
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