Search here for Tutorials

If the Data is different in your question, please send your questions to homeworksolutionsnow@gmail.com. The questions will be answered at the same price.

VCI's investment into the project would be 150,000. They estimate the total market for the film to be

VCI's investment into the project would be 150,000. They estimate the total market for the film to be 100,000 units. Other data as follows:

Cost of Distribution Rights for Film $125,000
Label Design 5000
Package Design 10,000
Advertising 35,000
Reproduction of Copies (per 1000) 4,000
Manufacture of labels and packaging (per1000) 500
Royalties (per 1,000)500

VCIs suggested retail price for the film is $20 per unit. The retailers margin is 40%.
a. What is VCI'S unit contribution and contribution margin?

CLICK HERE FOR SOLUTION