Question
CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $3.50. The variable costs per disc
CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $3.50. The variable costs per disc are $2.50.
a. To just break even, how many CDs must be sold per month if the fixed costs are $55,000 per month? Number of CDs per month
b. What must sales be in order to have a profit of $9,000 per month? Sales CDs per month
c. What will their profit be if they have total revenue of $245,000 per month? Profit $ per month
d. How many CDs would have to be sold per month to break even if they increased their selling price to $5.00 each? Break even CDs
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