The following cost information pertains to the new CD: CD package and disc (direct material and labor): $2.50/CD Songwriters' royalties: $0.70/CD Recording Artists' royalties: $2.00/CD Advertising & promotion: $380,000 Sony Records Inc.'s Overhead: $300,000 Selling price of CD: $10.00 Question 2: If they sold 100,000 CDs and decided they wanted to invest in a $75,000 advertising campaign in the hopes of generating more sales, how many more CDs would they have to sell to maintain their current contribution to the organization? 92,500 15,625 75,000 None of these

The following cost information pertains to the new CD: CD package and disc (direct material and labor): $2.50/CD Songwriters' royalties: $0.70/CD Recording Artists' royalties: $2.00/CD Advertising & promotion: $380,000 Sony Records Inc.'s Overhead: $300,000 Selling price of CD: $10.00 Question 2: If they sold 100,000 CDs and decided they wanted to invest in a $75,000 advertising campaign in the hopes of generating more sales, how many more CDs would they have to sell to maintain their current contribution to the organization? 92,500 15,625 75,000 None of these

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Description: The following cost information pertains to the new CD:CD package and disc (direct material and labor):$2.50/CDSongwriters' royalties:$0.70/CDRecording Artists' royalties:$2.00/CDAdvertising & promotion:$380,000Sony Records Inc.'s Overhead:$300,000Se

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 21P

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