Financial Exercise HW - Contribution CD package and...

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Contribution CD package and Disk (Direct Material and Labor) per CD Songwriter's royalties per CD Recording artist's royalites per CD Advertising and promotion Studio Recordings, Inc's overhead Selling price to CD distributer per CD Selling price to CD distributer per CD Unit Variable cost CD package and Disk (Direct Material and Labor) Songwriter's royalties Recording artist's royalites Unit Variable cost Selling price to CD distributer Total Contribution break-even volume in CD units and dollars Advertising and promotion Studio Recordings, Inc's overhead Selling price to CD distributer per CD minus (-) Unit variable cost Unit Break even volume unit selling price dollar break even volume Net profit if 1 million CDs are sold 1 million units Selling price to CD distributer per CD total Unit price sales revenue unit variable cost total variable cost
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unit contribution total contribution fixed costs net profit Necessary CD unit volume to achieve a $200,000 profit profit goal dollar profit goal = (P x profit goal percent on sales) $525,000+$200,000 $9.00-$2.60 Necessary CD unit volume to achieve a $200,000 profit
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$1.25
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