Calculate the contribution per cd unit

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Reference no: EM13165607

Executives of Studio Recording,Inc, produced the lastest compact disc by the Starshine Sisters Band Sunshine/Moonshine. The following cost information pertains to the new cd.

Cd packages and disc(direct material and labor) $1.25/CD
Songwriters royalties $0.35/CD
Recording artists royalties $1.00/CD
Advertising and promotion $275,000
Studio Recording, Inc, overhead $250,000
Selling price to CD distributor $9.00

Calculate the contribution per CD unit, break-even volume in CD units and dollars, net profit if 1 million CDs are sold and necessary CD unit volume to achieve a $200,000 profit.

Reference no: EM13165607

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