Solve the following problem 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?

Question

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The Answer of Solve the following problem 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?

Solve the Following Problem Using the Contribution Margin Approach