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2. Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $15. Retailers take a 45% margin based on the
2. Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $15. Retailers take a 45% margin based on the retail selling price. Advanced's cost information is as follows: DVD package and disc Royalties Advertising and promotion Overhead Calculate the following: Contribution per unit $2.50/DVD $2.25/DVD $500,000 $200,000 Calculate: a. Break-even volume in DVD units and dollars b. Volume in DVD units and dollar sales necessary if Advanced Electronics profit goal is $300,000 c. Net profit if 5 million DVDs are sold
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