| OPERATING PROFIT CALCULATION |
| |
Units |
Dollars |
Per Unit |
| Gross
Receipts from Sales |
124,583 |
$1,214,310 |
|
| Returns |
(10,000) |
($101,626) |
|
| |
Net
Sales |
114,583 |
$1,112,684 |
$9.71 |
| Cost of
Sales |
|
($494,145) |
($4.31) |
| |
Gross
Profit |
|
$618,539 |
$5.4 |
| Co-op,
Sales and Marketing |
|
($259,900) |
($2.27) |
| Other
Receipts |
|
$40,000 |
$0.35 |
| |
OPERATING PROFIT (LOSS) |
|
$398,639 |
$3.48 |
|
| |
| |
| RECEIPTS |
| |
Units |
Dollars |
|
| Receipts from Distributor |
|
|
|
| |
Gross
Receipts from Distributor |
100,000 |
$1,016,260 |
|
| |
Returns |
(10,000) |
($101,626) |
|
| |
Distributor
Charges |
-- |
($256,098) |
|
| |
Co-op |
-- |
($42,500) |
|
| |
Net Receipts
from Distributor |
90,000 |
$616,036 |
|
| |
| Digital Receipts |
|
|
|
| |
Full
Length |
10,000 |
$74,000 |
|
| |
Tracks |
40,000 |
$28,000 |
|
| |
Subscriptions |
-- |
$0 |
|
| |
Distributor
Charges (Digital) |
-- |
($10,200) |
|
| |
Total Digital
Receipts |
13,333 |
$91,800 |
|
| |
| Direct
Receipts |
|
|
|
| |
Retail |
4,250 |
$55,250 |
|
| |
Wholesale |
1,000 |
$9,000 |
|
| |
Artist |
6,000 |
$42,000 |
|
| |
Total Direct
Receipts |
11,250 |
$106,250 |
|
| |
| NET
RECEIPTS LESS CO-OP |
114,583 |
$814,086 |
|
|
| EXPENDITURES DETAIL |
| Cost
of Sales |
Amount |
% |
| |
Distribution Fee |
$254,065 |
33.7% |
| |
Return
Fee |
$2,033 |
0.3% |
| |
Other
Distribution Fees |
$0 |
0.0% |
| |
Manufacturing * |
$77,362 |
10.3% |
| |
Recording |
$20,000 |
2.7% |
| |
Artist
Advances |
$5,000 |
0.7% |
| |
Publishing
Advances |
$0 |
0.0% |
| |
Artist
Royalties Payable |
$20,714 |
2.7% |
| |
Producer
Royalties Payable |
$22,445 |
3.0% |
| |
Publishing
Royalties Payable |
$92,526 |
12.3% |
| |
Total Cost of
Sales |
$494,145 |
65.5% |
| |
| Co-op
Advertising |
$42,500 |
5.6% |
| |
| Sales
(excludes co-op) |
$500 |
0.1% |
| |
| Marketing |
|
| |
Retail |
$5,000 |
0.7% |
| |
Publicity |
$19,750 |
2.6% |
| |
Advertising |
$47,000 |
6.2% |
| |
Radio |
$48,000 |
6.4% |
| |
Video |
$24,750 |
3.3% |
| |
Street |
$17,000 |
2.3% |
| |
Tour
Support |
$25,500 |
3.4% |
| |
New
Media |
$6,250 |
0.8% |
| |
General |
$1,500 |
0.2% |
| |
Marketing
Items |
$22,150 |
2.9% |
| |
Total
Marketing |
$216,900 |
28.8% |
| |
| TOTAL
EXPENDITURES |
$754,045 |
100.0% |
| |
| |
| EXPENDITURES BREAKDOWN |
| Recoupable
Expenditures |
$109,500 |
14.5% |
| Non-Recoupable Expenditures |
$644,545 |
85.5% |
| |
Total
Expenditures |
$754,045 |
100.0% |
| |
| Total
Out-of-Pocket Expenditures |
$455,448 |
60.4% |
| Deducted
Expenditures |
$298,598 |
39.6% |
| |
Total
Expenditures |
$754,045 |
100.0% |
| |
|