Case Study Executives of Studio Recordings, Inc produce new CDs for the Sunshine Sisters band. Use...
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Case Study Executives of Studio Recordings, Inc produce new CDs for the Sunshine Sisters band. Use the following cost and revenue figures to answer the questions: CD packaging and disc label: Royalty Fees: Advertising Costs: $2.00/CD $. 25/CD Studio Overhead Costs: Selling Price to CD Distributor: Part I: Calculate the following (Show your calculations): 3 pts. Contribution Margin per CD: $275,000 $300,000 $9.00/CD 10 pts. Breakeven volume in units and dollars: 7 pts. What is the necessary incremental unit volume to earn $200,000 in profit? 7 pts. COGS (S): 5 pts. COGS (%): 5 pts. Gross Profit (S): 5 pts. Gross Margin (%): Part II: Complete a Profit & Loss statement based on 1 million units sold. You will include the following information: 3 pts. pts. Gross Revenue: 3 pts. Net Profit (S): 4 7 pts. What is the necessary incremental unit volume to earn $200,000 in profit? Part II: Complete a Profit & Loss statement based on 1 million units sold. You will include the following information: 3 pts. pts. Gross Revenue: 7 pts. COGS (S): 5 pts. COGS (%): 5 pts. Gross Profit (S): 5 pts. Gross Margin (%): 3 pts. Net Profit (S): 2 pts. Net Profit (%): Show your work by adding your Profit & Loss statement below: Case Study Executives of Studio Recordings, Inc produce new CDs for the Sunshine Sisters band. Use the following cost and revenue figures to answer the questions: CD packaging and disc label: Royalty Fees: Advertising Costs: $2.00/CD $. 25/CD Studio Overhead Costs: Selling Price to CD Distributor: Part I: Calculate the following (Show your calculations): 3 pts. Contribution Margin per CD: $275,000 $300,000 $9.00/CD 10 pts. Breakeven volume in units and dollars: 7 pts. What is the necessary incremental unit volume to earn $200,000 in profit? 7 pts. COGS (S): 5 pts. COGS (%): 5 pts. Gross Profit (S): 5 pts. Gross Margin (%): Part II: Complete a Profit & Loss statement based on 1 million units sold. You will include the following information: 3 pts. pts. Gross Revenue: 3 pts. Net Profit (S): 4 7 pts. What is the necessary incremental unit volume to earn $200,000 in profit? Part II: Complete a Profit & Loss statement based on 1 million units sold. You will include the following information: 3 pts. pts. Gross Revenue: 7 pts. COGS (S): 5 pts. COGS (%): 5 pts. Gross Profit (S): 5 pts. Gross Margin (%): 3 pts. Net Profit (S): 2 pts. Net Profit (%): Show your work by adding your Profit & Loss statement below:
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Answer rating: 100% (QA)
ANSWER Part I Contribution Margin per CD Selling Price to CD Distributor 900 Cost per CD CD packaging and disc label 025 Royalty Fees 200 Advertising Costs 000 Studio Overhead Costs 900 Contribution M... View the full answer
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