• CD package and disc (direct material and labor) = 0.29
• Songwriters' royalties = 0.05
• Recording artists' royalties = 1.15
• Advertising and promotion =199000
• Studio Recordings, Inc., overhead = $275,000
• Selling price to CD distributor = 1.99

To find Contribution per CD unitI did this 1)TVC=Direct materials and labor+songwriters' royalties+artists' royaltiesTVC=0.29+0.05+1.15=1.49

2)CMU=SPU-TVCSPU=1.99TVC per unit=1.49CMU=1.99-1.49= 0.5(Contributionper CD unit is 50 cents)

Would that be correct?

To find Net profit if 1 million CDs are sold I did this PFT=Total revenue-Total Cost 1)TR=1mil x1.99=19900002) TC=TFC+TVCTFC=474000 TVC=1mil x TVC per unit (1.49)=1490000 TC=474000+1490000=1964000 3) PFT=1990000-1964000=26000

are my answers and steps correct?