Answer to Question #82574 in Accounting for Maida Muminovic

Question

The following cost information pertains to the new CD:

CD package and disc (direct material and labor): $2.50/CD

Songwriters’ royalties: $0.70/CD

Recording Artists’ royalties: $2.00/CD

Advertising & promotion: $380,000

Sony Records Inc,’s Overhead: $300,000

Selling price to CD Distributor: $10.00



3) By what percent does this change in sales represent?

Answer 1

3) To calculate percent change in sales, we need to know information about previous sales price, variable and fixed costs and also we need to know quantity sold before and after change.