Martin King Arthur popularly known as Kofi Kinaata, is a Ghanaian rapper based in Takoradi in the Western region. He is noted for his fante rap and freestyle which has made him to be known as the Fante Rap God (FRG). In 2019, Kinaata released his “Things Fall Apart” single recorded in Abrantie music studio at Abeka-Lapaz and has since topped charts across music platforms. The cost of recording “Things Fall Apart” was ¢40,000 but copies are GH¢6 apiece. The CD currently sells for GH¢20 at Despite music stores and other music retail outlets. i. Calculate the number of CDs to be sold by Kofi Kinaata to break even on the 2019 single ii. What will be the revenue generated at the breakeven point Demand for the single has substantially exceeded the break-even point computed in (a) (i). As a result, Kinaata is contemplating doing a remix of “Things Fall Apart” but this time cut the CD at a classier (and pricier) studio, the Magic Recordings Studios in East Legon. The new recording cost would be GH¢60,000. However, since this new studio works with very high volumes, production costs would fall to GH¢3. i. What is the break-even point for this new process?  ii. Comparing the production costs for the two processes, for what volume of demand should Kinaata choose the classier studio?

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Question 2
a. Martin King Arthur popularly known as Kofi Kinaata, is a Ghanaian rapper based in Takoradi
in the Western region. He is noted for his fante rap and freestyle which has made him to be
known as the Fante Rap God (FRG). In 2019, Kinaata released his “Things Fall Apart” single
recorded in Abrantie music studio at Abeka-Lapaz and has since topped charts across music
platforms. The cost of recording “Things Fall Apart” was ¢40,000 but copies are GH¢6 apiece.
The CD currently sells for GH¢20 at Despite music stores and other music retail outlets.
i. Calculate the number of CDs to be sold by Kofi Kinaata to break even on the 2019 single

ii. What will be the revenue generated at the breakeven point

Demand for the single has substantially exceeded the break-even point computed in (a) (i). As
a result, Kinaata is contemplating doing a remix of “Things Fall Apart” but this time cut the CD
at a classier (and pricier) studio, the Magic Recordings Studios in East Legon. The new
recording cost would be GH¢60,000. However, since this new studio works with very high
volumes, production costs would fall to GH¢3.
i. What is the break-even point for this new process? 
ii. Comparing the production costs for the two processes, for what volume of demand should
Kinaata choose the classier studio? 

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