Is it more profitable to sell your product for $50 or $15? This is a difficult question for many movie studio executives. Consider a movie that cost $75 million to produce and required another $30 million to promote. After its theater release, the studio must determine whether to sell DVDs directly to the public at a wholesale price of about $15 per DVD or to sell to video rental store distributors for about $50 per DVD. The distributors will then sell to about 20,000 video rental stores in the United States. Assume that the variable cost to produce and ship 1 DVD is $5.00. Read the requirements. Requirement 1. Suppose each video rental store would purchase 5 DVDs of this movie. How many DVDs would need to be sold directly to customers to make direct sales a more profitable option than sales to video store distributors? Select the formula needed, and then enter the amounts to calculate how many DVDs the company would need to sell directly to customers to make direct sales a more profitable option than sales to video store distributors. (Abbreviations used: CM = contribution margin, Min. # - Minimum Number. Round your answer up to the nearest whole number.) Total CM from sales to distributors CM per direct sale DVD = Min. # of DVD sales to direct customers 1 1