Executives of studio recordings inc. produced the latest, Ask an Expert

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Executives of Studio Recordings, Inc. produced the latest compact disc by the Starshine Sisters Band, titled Sunshine /Moonshine . The following cost information pertains to the new CD:

CD package and disc (direct material and labor) $1.25/CD
Songwriters' royalties $0.35/CD
Recording artists' royalties $1.00/CD
Advertising and promotion $275,000
Studio Recordings, Inc.'s overhead $250,000
Selling price to CD distributor $9.00

Calculate the Contribution per CD unit

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