Mikey w. smitty, an emerging rapper, is getting ready to cut his first cd, called "western rap." he is looking for a production company to produce his "western rap" cd. mikey w. smitty is confident that demand for his "western rap" cd will substantially exceed the break even point of 500cds or $7,500 in sales. studio a charges $10,800 to record the cd and $9.50 per cd to duplicate it. studio b charges only $7,500 to record the cd, but $11.50 per cd for duplication. the cd will sell for $21.50.
what is the breakeven point for studio a? (round answer to 2 decimal places, the tolerance is +/- 1). the breakeven point for studio a cds.
compare studio a and b. at what volume of demand should studio a be chosen? (round answer to the nearest whole number, the tolerance is +/- 1).
if than(amount of we should choose studio a.
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