Executives of Studio Recordings, INC produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine Strategic Marketing Chapter 2 Problem 1
Answer: Includes Detailed Steps and Calculation
Strategic Marketing Chapter 2 Problem 1
Executives of Studio Recordings, INC produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The Following cost information pertains to the new CD:
| 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 to CD distributor | $9.00 |
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Calculate the following:
- Contribution per CD unit
- Break-even volume in CD units and dollars
- Net profit if 1 million CDs are sold
- Necessary CD unit volume to achieve a $200,000 profit
Course: MKT 450 Marketing Management
School: Grand Canyon University
- : 06/09/2017
- : 7
