The Los Angeles based dream rock group, The Sleepy Six, recently signed a major label record...

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The Los Angeles based dream rock group, The Sleepy Six, recently signed a major label record contract with Warner Music. All three major labels were bidding to sign The Sleepy Six, so the group's attorney had leverage and was able to secure the group a huge deal including a big artist advance of $200,000 paid to the group on signing the contract. The group's first album 'Counting Sheep' ends up being certified Platinum in the United States with total sales of 1,300,000 albums. This 1,300,000 albums includes CD's as well as so-called album equivalent units for digital downloads and streams. The album 'Counting Sheep' was recorded for $750,000 and the group received another artist advance of $50,000, on top of the $200,000 they were paid on signing the contract, on delivery of the album. In addition, the contract called for the record company to pay the group's lawyer $10,000 on signing of the contract. All the costs in this paragraph are deemed 100% recoupable per the group's contract. Marketing costs for 'Counting Sheep' were substantial as well. In the end, Warner Music ended up spending $1,400,000 in total marketing costs on the album. Of that $1,400,000, $400,000 was deemed 100% recoupable per contract and the remaining $1,000,000 in marketing is non-recoupable. The Sleeply Six write all their songs as a group and wrote all the 9 songs on 'Counting Sheep.' Their publishing earnings per album sold are thus $1.00 per album. As The Sleepy Six are a new band and have a young audience, Warner Music chose to sell 'Counting Sheep' at a lower price than many of its bigger artists - on average Warner Music made $3.25 in variable profit per 'Counting Sheep' album sold. Because of the discounted price on the album, the group's artist royalty per album sold ended being $1.30. a) how much money did Warner Music ultimately make (or lose) on 'Counting Sheep?" b) how much money are The Sleepy Six due in artist royalties (please do NOT reduce by so-called 'reserves')? c) how much publishing money is due? For a, b and c above you must show all your work to receive credit for your answer. The Los Angeles based dream rock group, The Sleepy Six, recently signed a major label record contract with Warner Music. All three major labels were bidding to sign The Sleepy Six, so the group's attorney had leverage and was able to secure the group a huge deal including a big artist advance of $200,000 paid to the group on signing the contract. The group's first album 'Counting Sheep' ends up being certified Platinum in the United States with total sales of 1,300,000 albums. This 1,300,000 albums includes CD's as well as so-called album equivalent units for digital downloads and streams. The album 'Counting Sheep' was recorded for $750,000 and the group received another artist advance of $50,000, on top of the $200,000 they were paid on signing the contract, on delivery of the album. In addition, the contract called for the record company to pay the group's lawyer $10,000 on signing of the contract. All the costs in this paragraph are deemed 100% recoupable per the group's contract. Marketing costs for 'Counting Sheep' were substantial as well. In the end, Warner Music ended up spending $1,400,000 in total marketing costs on the album. Of that $1,400,000, $400,000 was deemed 100% recoupable per contract and the remaining $1,000,000 in marketing is non-recoupable. The Sleeply Six write all their songs as a group and wrote all the 9 songs on 'Counting Sheep.' Their publishing earnings per album sold are thus $1.00 per album. As The Sleepy Six are a new band and have a young audience, Warner Music chose to sell 'Counting Sheep' at a lower price than many of its bigger artists - on average Warner Music made $3.25 in variable profit per 'Counting Sheep' album sold. Because of the discounted price on the album, the group's artist royalty per album sold ended being $1.30. a) how much money did Warner Music ultimately make (or lose) on 'Counting Sheep?" b) how much money are The Sleepy Six due in artist royalties (please do NOT reduce by so-called 'reserves')? c) how much publishing money is due? For a, b and c above you must show all your work to receive credit for your answer.

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a To calculate how much money Warner Music ultimately made or lost on Counting Sheep we need to cons... View the full answer