=+The actual production process for the software product is fairly straightforward. First, blank CDs are brought to a CD copying machine. The copying machine requires 1 hour per 1,500 CDs.

After the program is copied onto the CD, the CD is brought to assembly, where assembly per¬

sonnel pack the CD and manual for shipping. The direct labor cost for this work is $0.75 per unit.

The completed packages are then sold to retail outlets through a sales force. The sales force is compensated by a 10% commission on the wholesale price for all sales.

Total completed production was 45,000 units during the year. Other information is as follows:

Number ofsoftware units sold in 2008 40,000 Wholesale price per unit $200