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 new CD:

CD package and disc (direct material and labor) $1.25/CD

Songwriters royalties $0.35/CD

Recording artists royalties $1.00/CD

Advertising and promotion $275,000

Studio Recordings, Inc.s overhead $250,000

Selling price to CD distributor $9.00

Calculate the following:

a. Contribution per CD unit

b. Break-even volume in CD units and dollars

c. Net profit if 1 million CDs are sold

d. Necessary CD unit volume to achieve a $200,000 profit