Reference no: EM133035859

Question -

a. 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 thrown away on receipt? Show calculations (numbers and symbols only) in the below-provided box and determine the correct level of royalties in dollars should. Do not provide text. Assume a copyright royalty rate of 10%.

b. 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%.