virgin record company has just signed a new artist to its label. They have pais the new group 25000 dollars to record their album
and paid each band member 10000 dollars each. The band is not given
a commission on each cd sold or downloaded, therefore, each cd sold is profit earned by virgin. How
many cd's would they have to sell to break even if this new band has 5 members? Each cd is sold at the price of 20$.

Hi Dina,

Since there are 5 members in the band the record company paid out $25,000 + 5 × $10,000. Suppose they sell N cds then they take in N × $20. What is N if the amount they paid out is the same as the aount they took in?

Penny

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