Slipknot, a heavy metal-rock band, has just released their new CD, Duality. The cost information for the new CD and the launch is:

• CD package and disc (material and labor) $0.50 per CD
• Songwriters royalties $0.15 per CD
• Recording artists royalties $0.50 per CD
• Advertising and promotion $250,000
• Studio rental and overhead $150,000

The bands selling price for the CD is $8.00. Calculate the following:

1. Contribution per unit of the CD:
2. Breakeven sales in units and dollars:
3. Profit if 500,000 CDs are sold:
4. Number of CDs that must be sold to achieve a profit of $100,000: