1. Serendipity Sound, Inc. manufactures and sells compact discs. Price and cost data are as follows: $25.00 Selling price per unit (package of two CDs) Variable costs per unit: Direct material $10.50 5.00 3.00 1.30 19.80 Selling expenses Total variable costs per unit .. Annual fixed costs: $192,000 276,000 468,000 $ 3,000,000 Total fixed costs Forecasted annual sales volume (120,000 units) In the following requirements, ignore income taxes