Question: I have solved Qa-Q as shown, I just need help with Qf,Qg,Qh Question 5 (15 points) Executives at Studio Recordings, Inc. produced the latest compact


Question 5 (15 points) Executives at Studio Recordings, Inc. produced the latest compact disc the Starshine Sisters Band, titled Sunshine/Moonshine. The following cost information pertains to the new CD. Calculate the following: a) Contribution per CD (I point) b) Break-even volume in CD units (2 points) c) Break-even volume in dollars (2 points) d) Net profit if 1 million CDs are sold (2 points) INOTE: Net profit = Total revenue - Total costs] e) Necessary CD volume to achicve $200,000 profit (2 points) Calculate the following if the selling price is cut by 5% : f) Break-even volume in CD units (2 points) g) Break-even volume in dollars (2 points) h) Necessary CD volume to achicve $200,000 protit (2 poinss) Calculate the following if the selling price is cut by 5% : f) Break-even volume in CD.units (2 points) g) Break-even volume in dollars (2 points) h) Necessary CD volume to achicve $200,000 profit (2 points) Unit variable cost =CD package and disc + Songwriter's royalties + Recording artists' royalties =$1.25+$0.35+ $1=$2.6 Total fixed cost = Advertising and promotion + Studio recordings, Inc.'s overhead =$275,000+$250,000= $525,000 (a) Unit contribution margin = Selling price per unit Unit variable cost =$9$2.6=$6.4 (b) Break-even volume in CD units = Total fixed cost / Unit contribution margin =$525,000/$6.4=82,031.25 units (c) Break-even sales volume (in dollars) = Total fixed cost * Selling price per unit / Contribution margin per unit =$525,000$9/$6.4=$738,281.25 (d) Calculation of net profit is 1 million CDs are sold : (e) Required sales units = [ Fixed cost + Target profit ] / Contribution margin per unit =[$525,000+$200,000] /$6.4=113,281.25 units
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