Break even number of video disks = Fixed costs/(Selling price per unit – variable costs per unit)
= 580,000/(21-9-2)
= 58,000 disks
2.Net Income = (21-11)*250,000*1.15 – 580,000
= $2,295,000
3.Desired Sales Units= (1,920,000+580,000)/(21-10.8-2)
= 304,870.04878 disks
Hence, volume = $6,402,439
4.Current CM Ratio = 10/21 = 0.47619
Selling price per disk = (10.8+2)/(1-0.47619)
= $24.44 per unir
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