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Marketing Math HELP?


A local ban with five members has the following expenses.
Renting a recording studio, $2,400
Creating a promotional web site, $5,000
Duplicating and packaging 20,000 copies of a DVD, $50,000
Advertising and distribution costs, $62,000
Agent and songwriter fees, 10% of revenues

If the DVD sells for $15 per copy, how many copies will need to be sold in order to earn $10,000 for each band member?

Show how you got it

Money made from DVD sales required for band members to make 10,000 each = expenses + revenue, where
expenses = 119,400, and
0.9*revenue = 10,000*5 (Since band is left with 90% of the revenue)
Hence revenue = 50,000/0.9 = 55,555.55

So DVD sales need to be worth 119,400 + 55,555.55 = 174,955.55
Number of DVDs sold = 174,955.55/15 = 11,663.7
Needs to be an integer of course, so need to sell 11,664 DVDs.

12,549

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