For the following problems, you’ll need to get the values for
certain questions based on your birthdate. Make sure you show all
your work for every problem. To begin with, enter your birthdate
using the MM/DD/YYYY format. Is 01/16/1997

2)

The latest single from the Groovy Boogies has just been
released. Use the values from your date of birth following the
instructions below to identify the costs below. Then, use the costs
to make the calculations listed in parts a) through d) below.

CD package and disc (direct material and labor) = your date as
cents (e.g., 15 cents/CD or $.15/CD)

Songwriters’ royalties = your month as cents (e.g., 2 cents/CD
or $.02/CD)

Recording artists’ royalties = $1.15/CD

Advertising and promotion = your year multipled by hundred (e.g,
$199,800)

Studio Recordings, Inc., overhead = $275,000

Selling price to CD distributor = your year divided by 1000
(e.g., $1.998/CD)

Calculate the following:

a.   Contribution per CD unit (1
point)

b.   Break-even volume in CD units and dollars
(2 points)

c.    Net profit if 1 million CDs are
sold (1 point)

d.   Necessary CD unit volume to achieve a
$200,000 profit (1 point)

3)

IndieFilmsRUs is considering whether it should obtain the
distribution rights to an unreleased film titled Something Cool
and Strange Sounding. Use the following data for the
calculations listed in a) through c) below.

The firm estimates the total market for the film to be 85,000
units.

The firm’s suggested retail price for the film (i.e., the price
at which the retailer would sell the film to consumers) is [your
year divided by 100] per unit (e.g., $19.98).

However, the firm would need to sell the film to retailers at a
price that ensured the retailers would be able to make a profit of
35%.

Cost of distribution rights for film = your date multipled by
10,000 (e.g., $150,000)

Cost of label design = your month multipled by 1000 (e.g.,
$2000)

Cost of package design = your year multiplied by 10 (e.g.,
$19980)

Cost of advertising = $67000

Cost of reproduction (per copy) = your month (e.g., $2)

Cost of manufacture of labels and packaging (per copy) =
$.65

Cost of royalties (per copy) = your date divided by 100 (e.g.,
$.15)

Please calculate the following:

a. What is the price at which the firm must sell to the
retailers? (1 point)

b. What is the firm’s unit contribution and contribution
margin percentage? (2 points)

c. What is the break-even point in units? In dollars? (2
points)

4)

Old School Equipment Inc. manufactures DVD players that are
distributed to large retailers. They have three models and here are
the data available for each one:

They are considering launching a new model (FGB4), which would
sell at $436 per unit and have variable costs of $167 per unit. The
predicted demand is for the new model is [your year]. It is
expected that 30% of the unit sales of the new model will come from
the other models already being manufactured and sold by the firm.
In particular, 25% is expected to come from FGB1, 35% from FGB2,
and 40% from FGB3. The fixed costs incurred for the new model would
be [your month multiplied by 10,000].

Based on the data above, should Old School Equipment
Inc. add the FGB4 model to their lineup? Your response should
indicate a clear Yes or No, and provide an explanation in terms of
changes to the firm’s total revenue and margin. (5
points)