Johnny Rockabilly has just finished recording his latest CD. The company can produce the CD with no fixed cost and a variable cost of $5 per CD.

A) Find total revenue for quantity equal to 10,000, 20,000, and so on.
What is the marginal revenue for each 10,000 increase in the quantity sold?
B) What quantity of CDs would maximize profit? What would the price be? What would the profit be?
C) If you were Johnny's agent, what recording fee would you advise Johnny to demand from the record company?

Really just looking for help with part C

the c part is what I need help with.

idk lol

To answer part C of your question, as Johnny's agent, you would want to advise him on the recording fee he should demand from the record company.

In order to determine the recording fee, it's important to consider Johnny's cost structure, the demand for his CD, and the potential profit he could achieve. However, without information on the demand for Johnny's CD or the pricing strategy, it becomes difficult to provide a specific recording fee recommendation.

Here are a few factors to consider when determining the recording fee:

1. Market research: Understand the demand for Johnny's CD and how it compares to similar artists or albums. This information will give an indication of the potential sales volume.

2. Production costs: Quantify the fixed costs associated with producing the CD (e.g., mixing, mastering, artwork design) and the variable costs (e.g., manufacturing and packaging).

3. Pricing strategy: Determine the price point at which the CD will be sold. This decision should consider factors such as the target market, competition, and perceived value.

4. Revenue projection: Estimate the potential revenue by multiplying the price per CD by the expected sales volume (quantity sold). Deduct the production costs to calculate the gross profit.

5. Negotiation leverage: Consider Johnny's popularity, demand for his music, and his bargaining power with the record company. This will help determine a reasonable recording fee that aligns with his market value.

By considering these factors and conducting a thorough analysis, you'll be able to advise Johnny on what recording fee he should demand from the record company. It's crucial to strike a balance between maximizing Johnny's profit and maintaining a mutually beneficial relationship with the record company.

To determine the recording fee that Johnny's agent should advise him to demand from the record company, we need to consider Johnny's costs and revenue.

Given that the company can produce the CD with no fixed cost and a variable cost of $5 per CD, we can calculate the total cost (TC) as follows:
TC = Variable Cost (VC) * Quantity

Next, we need to calculate the total revenue (TR) for different quantities. The total revenue can be calculated using the following formula:
TR = Price (P) * Quantity

A) Let's calculate the total revenue for quantities equal to 10,000, 20,000, and so on. Assume the price per CD is denoted by P.

For a quantity of 10,000:
TR(10,000) = P * 10,000

For a quantity of 20,000:
TR(20,000) = P * 20,000

To find the marginal revenue (MR) for each 10,000 increase in the quantity sold, we need to calculate the difference in total revenue between consecutive quantities:
MR = TR(n) - TR(n-10,000)

For example, to find the marginal revenue for the increase from 10,000 to 20,000 CDs:
MR(10,000 to 20,000) = TR(20,000) - TR(10,000)

B) To determine the quantity of CDs that would maximize profit, we need to consider the relationship between total revenue and total cost. The profit (π) can be calculated as follows:
Profit (π) = Total Revenue (TR) - Total Cost (TC)

To find the quantity that maximizes profit, we should look for the point where the difference between total revenue and total cost is highest. We can graphically represent this by plotting the profit against the quantity sold and finding the maximum point on the graph.

To calculate the price that would maximize profit, we can use the following formula:
Price (P) = Total Revenue (TR) / Quantity

Once we find the quantity that maximizes profit and the corresponding price (P), we can calculate the profit by subtracting the total cost from the total revenue.

C) Finally, the recording fee that Johnny's agent should advise him to demand from the record company would depend on various factors such as Johnny's popularity, market demand for his music, and competition. Johnny's agent should consider negotiating a fee that reflects Johnny's value and ensures a fair return on investment for his talent and effort. It is crucial for the agent to assess market conditions, understand Johnny's standing in the industry, and evaluate potential offers from the record company before advising an appropriate recording fee.

Note: The actual calculations and values for total revenue, marginal revenue, profit, and recording fee will depend on the specific numbers provided in the problem statement or any additional information available.