Question

Rock singer and writer Carmine is paid 22% on his CD sales and 30% on his music downloads. Last year, he sold 5.6 million CDs and had 11.8 million music downloads. The CDs were sold to music stores for $5.75 each, and the music downloads were $1 each. How much did Carmine receive in royalties last year?

Answer 1

Carmine received $7,084,000 from CD sales and $3,540,000 from music downloads, totaling $10,624,000 in royalties last year.

Step-by-step explanation:

To calculate how much Carmine received in royalties last year, we first need to determine the total earnings from CD sales and music downloads separately, and then apply the respective percentage rates that he receives as royalties.

For CD sales:

• Total revenue from CDs = Number of CDs sold × Price per CD
• Total revenue from CDs = 5.6 million × $5.75
• Total revenue from CDs = $32,200,000
• Royalties from CDs = 22% of total revenue from CDs
• Royalties from CDs = 0.22 × $32,200,000
• Royalties from CDs = $7,084,000

For music downloads:

• Total revenue from downloads = Number of downloads × Price per download
• Total revenue from downloads = 11.8 million × $1
• Total revenue from downloads = $11,800,000
• Royalties from downloads = 30% of total revenue from downloads
• Royalties from downloads = 0.30 × $11,800,000
• Royalties from downloads = $3,540,000

To find the total royalties, we simply add the royalties from CDs and downloads:

• Total royalties = Royalties from CDs + Royalties from downloads
• Total royalties = $7,084,000 + $3,540,000
• Total royalties = $10,624,000

Carmine received $10,624,000 in royalties last year.