Bakr BuRashid is considering opening a music store. He wants to estimate the number of CDs he must sell to break even. The CDs will be sold for US$13.98 each, variable operating costs are US$10.48 per CD, and annual fixed operating costs are US$73,500.

a. Find the operating breakeven point in number of CDs.

b. Calculate the total operating costs at the breakeven volume found in part a.

c. If Bakr estimates that at a minimum he can sell 2,000 CDs per month, should he go into the music business?

d. How much EBIT will Bakr realize if he sells the minimum 2,000 CDs per month noted in part c?