Executives of Random Recordings, Inc., produced a digital album titled Sunshine/Moonshine by the Starshine Sisters Band. (a).

Question:

Executives of Random Recordings, Inc., produced a digital album titled Sunshine/Moonshine by the Starshine Sisters Band.

(a). Using the price and cost information that follows, prepare a chart like that in Figure 13 –6 showing total cost, fixed cost, and total revenue for album quantity sold levels starting at 10 ,000 through 100,000, using intervals of 10 ,000 for quantity of albums sold (i.e.,10,000, 20 ,000, 30 ,000, and so on).

Fig 13-6

Quantity of Pictures Price per Sold (Q) 0 400 800 1,200 1,600 2,000 Picture (P) $120 $120 $120 $120 $120 $120

(b). What is the break-even point for the digital album?

Selling price Album cover Songwriter's royalties Recording artists' royalties Direct material and labor costs

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Marketing

ISBN: 9781264218752

16th Edition

Authors: Roger Kerin, Steven Hartley, William Rudelius

Question Posted: