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Problem 1: Suppose that the promotion of Nestle stipulated that wrappers were to be non-Nestle chocolate bars only with the promotion structured as follows: 3 wrappers + $1 and Nestle will mail to the sender one CD of Rockin' Shoes. Letus suppose that all chocolate bars, regardless of brand, are sold for $2. If Nestle receives 2,100,000 wrappers and sends out, accordingly, 700,000 CD, how much will Nestle owe Chappell, the copyright holder, if the wrappers are recycled by Nestle yielding a savings to Nestle of 5 cents (0.05$) on production of 2,100,000 Nestle chocolate bars? Show calculations (numbers and symbols only) in the below-provided box and determine the correct level of royalties in dollars should be. Do not provide text. Assume a copyright royalty rate of 10%.
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