Calculate breakeven volume in cd units-volume in dollars

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Reference no: EM131027409

Executives of Studio Recordings, Inc. produced the latest CD by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD: CD package and disc (direct material & labor) $1.25 per CD Songwriter’s royalties $0.35 per CD Recording artists’ royalties $1.00 per CD Advertising & promotion $275,000 Selling price to CD distributor $9.00 Calculate the following: a. Contribution per CD unit b. Breakeven volume in CD units c. Breakeven volume in dollars d. Net profit if 1 million CDs are sold e. The number of CD units that must be sold to achieve a $200,000 profit

Reference no: EM131027409

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