Current contribution to the organization

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Reference no: EM132234376

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 to CD Distributor: $10.00

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?

Reference no: EM132234376

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