Executives of Studio recordings Inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the CD.

a. CD package $0.75/CD

b. Songwriters' royalties $0.45/CD

c. Recording artists' royalties $0.95/CD

d. Advertising and promotion $1,350,000

e. Studio recording Inc.'s overhead $280,000

f. Selling price to the CD distributor $8.70

Calculate the following:

• Contribution per CD unit
• Break-even volume in CD units and dollars
• Net profit if 1 million CDs are sold
• Necessary CD unit volume to achieve a $500,000 profit