New Age Recordings, Inc., produced the latest compact disc by the Skyline Band, titled A Story.

The following cost information pertains to the new CD:

CD package and disc (direct material and labor) - $1.35/CD

Songwriters royalties - $0.45/CD

Recording artists royalties - $1.00/CD

Advertising and promotion - $285,000

Studio Recordings, Inc., overhead - $260,000

Selling price to CD distributor - $9.00

Calculate the following:

Contribution per CD unit

Break-even volume in CD units

Net profit if 1 million CDs are sold

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