Melody Manufacturing produces a hip-hop CD that is sold for $20. The contribution margin ratio is 40%. Fixed expenses total $9,200. Instructions a. Compute the vaiable cost pe unit. b. Compute how many CDs Melody Manufacturing will have to sell in order to break even. c. Compute how many CDs Melody Manufacturning will have to sell in order to make a target net income of $16,200.

Suppose a holiday inn hotel has annual fixed costs applicable to its rooms of $1.2 million for its 300-room hotel, average daily room rents of $50, and average variable costs of $10 for each room rented. it operates 365 days per year. the amount of operating income on rooms, assuming an occupancy* rate of 80% for the year, that will be generated for the entire year is *occupancy = % of rooms rented