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Posted by: Homeworkhelp
Price Quoted by Student: $3
Posted On: 2018-01-26 06:06:05
VCI's investment into the project would be 150,000. They estimate the total market for the film to be 100,000 units. Other data as follows:

Cost of Distribution Rights for Film $125,000
Label Design 5000
Package Design 10,000
Advertising 35,000
Reproduction of Copies (per 1000) 4,000
Manufacture of labels and packaging (per1000) 500
Royalties (per 1,000)500

VCIs suggested retail price for the film is $20 per unit. The retailers margin is 40%.
a. What is VCI'S unit contribution and contribution margin?

VCI's investment into the project would be 150,000
Price $3
Attachment 1: VCIs investment into.doc
Solution Posted By: Homeworkhelp    Posted on: 26-01-2018