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Executives of Studio Recordings Inc. produced the latest compact disc by the Starshine Sisters Band, titledSunshine/Moonshine. The following cost informationpertains to the CD.a. CD package S 1.25/CDb. Songwriters' royaltiesc. Recording artists' royaltiesd. Advertising and promotione. Studio Recording Inc. 's overheadf. Selling price to the CD di.stributorCalculate the following:1. Contribution per CD unit$0.35/CD$1.00/CD$275,000S250,000S9.002. Break-even volume in CO units and dollars3. Net profit if 1 million CDs are sold4. Necessary CD unit volume to achieve a $200,000profit

Executives of Studio Recordings Inc. produced the latest compact disc by the Starshine Sisters Band, titledSunshine/Moonshine. The following cost informationpertains to the CD.a. CD package S 1.25/CDb. Songwriters' royaltiesc. Recording artists' royaltiesd. Advertising and promotione. Studio Recording Inc. 's overheadf. Selling price to the CD di.stributorCalculate the following:1. Contribution per CD unit$0.35/CD$1.00/CD$275,000S250,000S9.002. Break-even volume in CO units and dollars3. Net profit if 1 million CDs are sold4. Necessary CD unit volume to achieve a $200,000profit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Executives of Studio Recordings Inc. produced the latest compact disc by the Starshine Sisters Band, titled
Sunshine/Moonshine. The following cost information
pertains to the CD.
a. CD package S 1.25/CD
b. Songwriters' royalties
c. Recording artists' royalties
d. Advertising and promotion
e. Studio Recording Inc. 's overhead
f. Selling price to the CD di.stributor
Calculate the following:
1. Contribution per CD unit
$0.35/CD
$1.00/CD
$275,000
S250,000
S9.00
2. Break-even volume in CO units and dollars
3. Net profit if 1 million CDs are sold
4. Necessary CD unit volume to achieve a $200,000
profit

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