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1. Executives of Studio Recordings, Inc. produced the latest CD by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD:
CD package and disc (direct material & labor) $1.25 per CD Songwriter’s royalties $0.35 per CD Recording artists’ royalties $1.00 per CD Advertising & promotion $275,000 Selling price to CD distributor $9.00
Calculate the following:
a. Contribution per CD unit
b. Breakeven volume in CD units
c. Breakeven volume in dollars
d. Net profit if 1 million CDs are sold
e. The number of CD units that must be sold to achieve a $200,000 profit
Suppose that individuals in this economy invest 30% (use .30 in the graph) of what they produce; the labor force in this economy grows at 5% (use .05) per year; and 10% (use .1) of the capital stock wears out each year. Suppose that the capital labor..
The Case in Point on America’s shifting comparative advantage suggests that the United States may have a comparative advantage over other countries in the production of high-tech capital goods. What do you think might be the sources of this advantage..
If the federal government chooses to increase government expenditures explain the three methods of financing the expenditures in terms of: which is the most expansionary, what are the negative effects of each, and which is the most inflationary.
The Wall Street Journal's experience after it increased its price to 75 cents. Illustrate what implicit assumptions are the publisher and the analyst making about price elasticity.
illustrate what do you think will characterize the goods which the EU exports to the United States also the goods which the United States exports to the EU.
A student loan totals $18,000 a graduation. The interest rate is 6%, and there will be 60 payments beginning 1 month after graduation. If this student received $1,500 as a graduation present and uses it to pay off an extra $1500 in the first month, w..
The local apple stand sells apples for 50 cents each. They raise their price to 75 cents. The store was selling 100 apples a day but now they sell 50 apples a day. Calculate total revenue before and after the price change. List both answers i.e. befo..
A forklift can be purchased for $30,000. The market value of the forklift decreases by 20% of the previous year’s value for 2 years, and then by 15% in years 3 through 10. Maintenance is $400 in years 1 and 2, and then jumps to $750 in year 3. After ..
q.review the biographies of each of the seven members of the board of governors. what can you say about the composition
A family that won a $100,000 prize on America’s Funniest Home Videos decided to put one-half of the money in a college fun for their child who was responsible for the prize. If the fund earned interest at 6% per year, how much was in the account 14 y..
Identify firms that periodically shut down their operations. What are the conditions that exist when they shut down their operations and the conditions that exist when they resume their operations? Explain your reasoning.
Employees bear the cost and earn the returns on investments in general training and employers bear the cost and earn the return on specific training. Is this statement true, false, or uncertain? Give an economic justification for your answer.
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