Exhibit 11





                   K-TEL INTERNATIONAL, INC. AND SUBSIDIARIES

             STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE

                    (In Thousands, Except Per Share Amounts)

               For the Quarters ended September 30, 1995 and 1994

                                                                        1995    1994

                                                                            
Primary earnings per share --

Weighted average number of issued shares outstanding                    3,707   3,707

Effect of:
  Stock Incentive Plan                                                     96      97

Shares outstanding used to compute primary earnings per share           3,803   3,805

Net Income                                                             $  305  $   66

Primary earnings  per share                                            $  .02  $  .08



Fully diluted earnings per share --

Weighted average number of shares used for primary earnings per share   3,803   3,805

Effect of:
  Stock Incentive Plan                                                   --      --

Shares outstanding used to compute fully diluted earnings per share     3,803   3,805

Net Income                                                             $  305  $   66
                                                                          

Fully diluted earnings  per share                                      $  .08  $  .02