Marketing 13th Edition by Gary Armstrong, Philip Kotler

Exercise 27

Advanced Electronics manufactures DVDs and sells them directly to retailers who typically sell them for $20. Retailers take a 40% margin based on the retail selling price. Advanced's cost information is as follows:
Calculate the following:
a. contribution per unit and contribution margin
b. break-even volume in DVD units and dollars
c. volume in DVD units and dollar sales necessary if Advanced's profit goal is 20% profit on sales
d. net profit if 5 million DVDs are sold