Speakerboxx Music, Inc. produces a hip-hop CD that is sold for $15. The contribution margin ratio

is 30%. Fixed expenses total $6,750.

Instructions

A.

Compute the variable cost per unit.

B.

Compute how many CDs that Speakerboxx will have to sell in order to break even.

C.

Compute how many CDs that Speakerboxx will have to sell in order to make a target net

income of $16,200.

D.

Fill in the dollar amounts for the summary income statement below based on your answer to

part C