Solve using the Contribution Margin approach. CD Solutions Ltd. manufactures and replicates CDs for software and music

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Solve using the Contribution Margin approach.

CD Solutions Ltd. manufactures and replicates CDs for software and music recording companies. CD Solutions sells each disc for $2.50. The variable costs per disc are $1.00.

a. To just break even, how many CDs must be sold per month if the fixed costs are $60,000 per month?
b. What must sales be in order to have a profit of $7500 per month?

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