Company manufactures CDs and DVDs both assembled as 10 discs per pack. Predicted sales are 400,000 packs of CDs and 500,000 packs of DVDs. Predicted costs for the year are:

Variable costs Fixed Costs

Materials300,000 600,000

Other 350,000 900,000

Each product uses 50% of materials cost. 40% of other costs are assigned to CDs and 60% to DVDs. Desired annual profit is 200,000

What price should be charged of management believes the DVDs sell 20% more than the CDs. Round to the nearest cent.

Price for CDs?

Price for DVDs?

What is total profit per product?

CDs?

DVDs?