Executives of Studio Recordings Inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the CD.

a. CD package $0.75/CD

b. Songwriters’ royalties $0.45/CD

c. Recording artists’ royalties $0.95/CD

d. Advertising and promotion $1,350,000

e. Studio Recording Inc.’s overhead $280,000

f. Selling price to the CD distributor $8.70 Calculate the following:
1. Contribution per CD unit 2. Break-even volume in CD units and dollars 3. Net profit if 1 million CDs are sold 4. Necessary CD unit volume to achieve a $500,000 profit