Maurice Tutor

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About Maurice Tutor

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Teaching Since: May 2017
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 6.00

Video Concepts, Inc

Video Concepts, Inc. (VCI) markets video equipment and film through a variety of retail outlets. Presently, VCI is faced with a decision as to whether it should obtain the distribution rights to an unreleased film titled Touch of Orange. If this film is distributed by VCI directly to large retailers, VCI’s investment in the project would be $150,000.VCI estimates the total market for the film to be 100,000 units. Other data available are as follows:
Cost of distribution rights for film ……………………. $125,000
Label design ………………………………………………. 5,000
Package design …………………………………………... 10,000
Advertising ………………………………………………. 35,000
Reproduction of copies (per 1,000) ……………………….. 4,000
Manufacture of labels and packaging (per 1,000) …………… 500
Royalties (per 1,000) ………………………………………… 500

VCI’s suggested retail price for the film is $20 per unit. The retailer’s margin is 40 percent. What is VCI’s unit contribution and contribution margin?

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Jul 2017 11:07 AM My Price 6.00

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