The Washington Post ran a report on this subject on February 15, 1995. Based on information from the RIAA, Billboard Magazine, and elsewhere, they broke down the $11.99 street price of a typical hit new-release CD as follows: 

$ 2.00   Record-label profit + Executive salaries  
$ 1.40   New artist development  
$ 1.15   Distribution  
$ 1.10   Manufacturing (CD + artwork + jewel case)  
$   .85   "Other"  
$   .80   Performer royalties  
$   .65   Songwriter royalties  
$   .65   Advertising and promotion  
$   .35   Producer  
$   .30   Recording costs  
$   .25   Music videos  
$   .20   Managers and lawyers  
$   .10   Artist pensions 
________________  
$ 9.80   Wholesale cost to retailer  
$   .95   Miscellaneous retailer expenses  
$   .90   Store personnel salaries  
$   .75   Rent  
________________  
$12.40  Total cost to retailer  
$11.99  CD price at retail  
________________ 
$ .41 Loss to retailer  

These figures make it clear that everyone but the label is getting a royal screwing. Label profit, salaries, distribution (usually label-owned), manufacturing (label-owned again), and "other" (a.k.a. "hookers and cocaine for the label VPs") add up to $6.50/disc -- or more than half of a CD's retail price. 
The people who actually make the music (the performers, songwriters, and producers) get less than a third of that.