$2.$ Sony Pictures is currently trying to decide whether it should obtain the distribution rights to a new unreleased film. If Sony distributes the film directly, its investment in the project would be $$250,000.$ The total market for the fill is estimated to be $100,000$ units.

Here$$s what we know

Cost of Distribution $$125,000$

Label Design $$5000$

Package Design $$10000$

Advertising $$35000$

Reproduction of Copies $($per $1000)4000$

Manufacture of Labels $($per $1000)500$

Royalties per $(1,000)500$

Sony$$s suggested retail price for the film is $$20$ per unit. The retailer margin is $40\%$ of the retail price

A$.$ What is Sony$$s contribution and contribution margin for the film

B$.$ What is the unit break even? What is the Dollar Break Even

C$.$ What share of the market would the film have to achieve to earn a $20\%$ return on its investment in the first year?