Record labels pay composers and publishers mechanical royalties. They try to cap mechanical royalty budgets at ten songs payable at 75% of the statutory rate ($.80 per song), which equals $.60 per song under the controlled composition clauses of recording contracts. Promotional Costs Major labels budget approximately 20% of annual gross income for promotion and selectively allocate the funds according to sales projections for each
Case Study 1 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? Contribution Margin/Passenger = 160 -70 Contribution margin ratio = 160- 70/ 160 Break Even Points in Units = (Total Fixed Costs + Target Profit )/Contribution Margin Break-even for passengers: (3,150,000 + 0) / (160-70):35000 Break Even Points in Sales = (Total Fixed Costs + Target Profit )/Contribution Margin Ratio Break-even for revenues: (3,150,000 + 0)/ (90/160): $5,600,000 b. What is the break-even point in number of passenger train cars per month?
If the firm tries to take out the maximum surplus from each customer by pricing menu options, some of the consumers are most likely going to select different options to obtain surplus. 8. You own a theater with 200 seats. The demand for seats is Q = 300 – 100P. You are charging $1.25 per ticket and selling tickets to 175 people.
Alternatively, $499 and $600 are also being considered. As we consider the price for the new guitar, we need to keep in mind that Guitar World will be receiving 40% of the sale price from the wholesalers and retailers. Problem * In order for the new product line to be successful, we will need to calculate the break-even point in both, sales and units. This needs be done for all 3 price ranges, $499, $549 and $600. * We will calculate the net profit for the sales target of 2000 units.
in interest for the first 5 months on the balance you bring across. The card however does have an annual fee of $144 plus an additional $15 for an extra card can be either a MasterCard or American express car. The gold card does have awards points using American express Up to 2 Awards points for every $1 spent and with MasterCard 1 point for every dollar spent on the Commonwealth Bank Gold Credit Card which you can redeem your points for a massive range of gift cards, merchandise, cash back,
New contribution margin = $70 Break-even point in passengers = fixed costs/contribution margin Passengers = 45,000 Train cars = 715 e) Springfield Express has experienced an increase in variable cost per passenger to $ 85 and an increase in total fixed cost to $ 3,600,000. The company has decided to raise the average fare to $ 205. If the tax rate is 30 percent, how many passengers per month are needed to generate an after-tax profit of $ 750,000? Before Tax Needed Profit = $1,071,428.57 Before Tax Needed Contribution Margin = $4,671,428.57 Contribution Margin per Customer = $120 Number of Customers Needed = 38,928.57 Whole Number of Customers Needed = 38,929
FI 515 Course Project a) The net cost of the spectrometer would include the original cost of the equipment, the modification costs and the increase in working capital due to having the equipment. Therefore, the net cost would be the $70,000 base costs, plus the $15,000 in modification costs and the $4,000 in capital, which equals $89,000. b) To find the operating cash flows for the three years, we have to find the cost savings after taxes and add the tax of depreciation. To find the cost savings, we have to take the $25,000 that is expected to be saved and reduce it based on a tax of 40%, or $25,000(1-.4), which equals $15,000. The tax on depreciation requires several steps to calculate.
A commitment was made for 29 of the 47 luxury suites in the new ballpark at prices from $600,000 and $800,000 and will have a 74 seat club which would be priced at $700 per ticket. For ordinary seats, the club would send out a relocation plan. There would be about 11000 non-premium seats at field level and 12000 at the main level. In the final season of the current stadium, the team had 162 legend seats priced at $1000 a game. Behind that are 3000 Field Champion seats, which were sold for $250 a game this year as part of seasons tickets.
The ticket revenue goal is $650 million, and 7.9 million tickets sold. For the Olympic Games, ticket sales represent around 20% of total revenue. Not only are they looking to put spectators in the seats, but also they would like knowledgeable fans at each event.
Management believed they would break even on an undiscounted cash flow basis with sales of 250 planes, and could sell as many as 750 over the next 20 years! At the time, Airbus was predicting that there would be demand for more than 1,500 super jumbos over the next 20 years that would generate sales in