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Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40 percent margin based on the retail selling price. Advanced's cost information is as follows:DVD package and disc$2.50/DVDRoyalties$2.25/DVDAdvertising and promotion$500,000Overhead$200,000Calculate the following:a. contribution per unit and contribution marginb. break-even volume in DVD units and dollarsc. volume in DVD units and dollar sales necessary if Advanced's profit goal is 20 percentprofit on salesd. net profit if 5 million DVDs are sold
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