13 2 points Fame and Fortune
The agent for a group of musicians has presented the
following two contracts for their first CD recording:
Contract A: The recording company will pay them $1.50 per CD sold, but the
group must pay $50,000 production costs from their profits.
Contract B: The recording company will pay them $0.50 per CD sold, with no
charge for production costs.
What is the difference in profit (if any) between options A
and B when 50,000 CDs have been sold?
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