Question

Suppose that a country bandcountry band called Only HereOnly Here has released its first CD with WantedWanted Records at an intended list price of​ $14.99. Music stores have discovered that they can markup the price to​ $17.99 with continued strong sales. What information does this higher price convey to the recording​ label?

Answer 1

Answer:

The recording label should increase the production and distribution of Here band

Explanation:

In the given question it is stated that the Music stores can markup to the price of $17.99 with continued strong sales against the listed price of $14.99.

Now,

The markup price is the extra amount that is over the cost of product or the service.

Thus,

Here, the Markup will further increase the profit by $17.99 - $14.99 = $3

Hence,

The recording label should increase the production and distribution of Here band