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Future Market Conditions

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Future Market Conditions toe the Music Industry and Compact Disc Sales, address the following topics:
1-Cost structure (wages and benefits; fixed and variable costs)
2-Impact of government regulations

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Help explain this

Future Market Conditions toe the Music Industry and Compact Disc Sales, address the following topics:
1-Cost structure (wages and benefits; fixed and variable costs)
The cost structure of the Music Industry is that the product cost of a compact disc is approximately $10.00 of this the production cost is $2.00, the royalty/payment to the artist is $1,50, the promotion and advertising cost is $2,00, the distribution cost is $1.50 and the production margin is $3.00. Usually the retailer margin is $5.00 and the CD is sold at $15.00.
What is important is that the distribution, promotion and advertising and production margin costs are relatively high. Moreover, the retailers have a high margin and ...

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