Worth 10 Points!!!

[mrnoodle]

Originally Posted by Undertoad

But if you understand those kinds of problems, you can apply your math understanding to real-world problems too. For example, on Friday I developed this strange brain teaser. The math is easy, let's see if you can do it:

Suppose you have a music distribution co-operative where new artists are charged $500 as a one-time lifetime fee for being a part of it.

Suppose this co-operative realizes this model is wrong for most artists, and wants to change it to a monthly membership fee.

Under the old system, 20 artists per month sign up at $500 one-time fee, bringing in $10000 per month. The operation needs this $10000 per month to survive. Under the new system, artists will be charged $29.95 per month. Assuming the new plan brings in 35 artists per month:

A) How many months will it be before it turns a profit?
B) How much cash will the operation lose before it turns a profit?

Now the extra credit.

Most artists have two CDs to distribute, which requires no small amount of work to put into the system. Some artists have 10, which is a burden. Suppose that each artist is charged $50 one time per CD to add their CD to the system. Suppose that the average artist has 2.5 CDs. Now how long will it take?

I suck at math, but knowing the starving artist bit pretty well, I'd say you'd have a better chance of getting $500 out of a band in one shot than you would over the course of several $30 payments. People save up for something that's $500, but when they're $30 short at the end of the month...

But I don't know business, either -- what's the bottom line difference between having to handle music for 1500 artists who pay $30 and handling music for 100 artists who pay $500? Doesn't the lessened workload make the latter more appealing?

Sorry for the hijack -- we now return you to your regularly scheduled math problem.....