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Play and GrooveSony EyeToy Play Sony EyeToy Groove Fixed CostsFixed CostsDevelopment2,500,000.00Development2,000,000.00Marketing5,000,000.00Marketing5,000,000.00TOTAL7,500,000.00TOTAL7,000,000.00

Cost per UnitCost per UnitPrice35.00Price23.00Camera Production Cost12.00Packing and distribution2.00Packing and distribution2.00Intracompany royalties2.00Intracompany royalties2.00Unit Contribution (P-k)19.00Unit Contribution (P-k)19.00Units sold$100,000Units sold$2,500,000TOTAL contribution1,900,000.00TOTAL contribution47,500,000.00TOTAL profit of SCEE-5,100,000.00TOTAL profit of SCEE40,000,000.00Cost per UnitCost per UnitSelling Price39.99Selling Price59.99Price Before Tax34.03Price Before Tax51.06Tax5.96Tax8.93Trade Price23.00Trade Price35.00PROFIT MARGIN FOR RETAILERS11.03PROFIT MARGIN FOR RETAILERS16.06

Play2Sony EyeToy Play 2 2Fixed CostsDevelopment2,000,000.00Marketing5,000,000.00TOTAL7,000,000.00

Bundled w/ CameraNot Bundled w/ CameraCost per UnitCost per UnitPrice35.00Price16.00Camera Production Cost12.00Packing and distribution2.00Packing and distribution2.00Intracompany royalties2.00Intracompany royalties2.00Unit Contribution (P-k)12.00Unit Contribution (P-k)19.00Units sold$500,000Units sold$1,500,000TOTAL contribution6,000,000.00TOTAL contribution28,500,000.00TOTAL profit from non-bundle2,500,000.00TOTAL profit from bundle25,000,000.00TOTAL PROFIT OF SCEE27,500,000.00

Cost per UnitCost per UnitSelling Price59.99Selling Price29.99Price Before Tax51.06Price Before Tax25.52Tax8.93Tax4.47Trade Price35.00Trade Price16.00PROFIT MARGIN FOR RETAILERS16.06PROFIT MARGIN FOR RETAILERS9.52

SingStar

SingStar Fixed CostsDevelopment2,000,000.00Marketing5,000,000.00TOTAL7,000,000.00

Bundled w/ CameraNot Bundled w/ CameraCost per UnitCost per UnitPrice40.00Price24.00Camera Production Cost12.00Microphone Production Cost12.00Microphone Production Cost12.00Packing and distribution2.00Packing and distribution2.00Intracompany royalties2.00Intracompany royalties2.00Unit Contribution (P-k)8.00Unit Contribution (P-k)12.00Units sold$500,000Units sold$1,000,000TOTAL contribution4,000,000.00TOTAL contribution12,000,000.00TOTAL profit from non-bundle500,000.00TOTAL profit from bundle8,500,000.00TOTAL PROFIT OF SCEE9,000,000.00

Cost per UnitCost per UnitSelling Price59.99Selling Price39.99Price Before Tax51.06Price Before Tax34.03Tax8.93Tax5.96Trade Price40.00Trade Price24.00PROFIT MARGIN FOR RETAILERS11.06PROFIT MARGIN FOR RETAILERS10.03


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