Break-even unit and sales volume

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Reference no: EM131263867

Kickflic DVD Recordings is producing the latest DVD movie for Jackie Chan. The following cost information pertains to the new DVD:

DVD package and disc (direct material and labor) $1.10/DVD

Jackie Chan Production Company royalties $2.50/DVD

Actors’ Royalties $0.54/DVD

Mechanical Royalties $0.91/DVD

Writers' Royalties $0.21/DVD

Advertising and promotion $350,000

Kickflic DVD Recording's overhead $275,000

Selling price to DVD distributor $8.99

Calculate the following (show all calculations):

a. Contribution and contribution margin per DVD unit

b. Break-even unit and sales volume

c. net profit if 200,000 DVD are sold to distributors.

d. Necessary unit volume and revenue needed to achieve a $200,000 profit.

Reference no: EM131263867

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