Reference no: EM132629776
RBF, an emerging singer, is getting ready to cut his first album. The cost of recording the CD is Php 500,000 but copies are Php 500 apiece. If the album can be sold for Php1,500 each,
(a) How many CDs must be sold to break even?
(b)What is RBF, an emerging singer, is getting ready to cut his first album.
The cost of recording the CD is Php 500,000 but copies are Php 500 apiece. If the album can be sold for Php1,500 each,
(a) how many CDs must be sold to break even?
(b)What is the breakeven point in dollars? RBF is confident that demand for his album will substantially exceed the break-even point computed above. So, Mikey is contemplating having his album at a classier (and pricier) studio. The cost to record the CD would rise to Php 90,000. However, since this new studio works with very high volume, production costs would fall to Php 200 per CD.
(c) What is the breakeven point for this new process?
(d) Compare this process to the process proposed in the previous problem. For what volume of demand should RBF choose the classier studio?the breakeven point in dollars? RBF is confident that demand for his album will substantially exceed the break-even point computed above. So, Mikey is contemplating having his album at a classier (and pricier) studio. The cost to record the CD would rise to Php 90,000. However, since this new studio works with very high volume, production costs would fall to Php 200 per CD.
(c) What is the breakeven point for this new process?
(d) Compare this process to the process proposed in the previous problem. For what volume of demand should RBF choose the classier studio?
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: RBF, an emerging singer, is getting ready to cut his first album. The cost of recording the CD is Php 500,000 but copies are Php 500 apiece. If the album
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