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Assume you are the manufacturer and answer the following questions using the information in the case. Calculate answers to at least three decimal places
Assume you are the manufacturer and answer the following questions using the information in the case. Calculate answers to at least three decimal places except for unit calculations, which should be rounded up to the next full unit. 1. What is the unit contribution for Hohner? 2. What is Hohner's break-even point? 3. What market share does Hohner need to break even? 4. What is Hohner's profit? sell to break even? b. How many units must Hohner sell to achieve the same profit (in terms of dollar amount) next year as it earned this year? c. What must Hohner's market share be for its profit (in terms of dollar amount) to remain at this year's level? The Harmonica Market Given data: Retail price of the Marine Band harmonica = 30 Retailer margin = 33% Distributor margin = 12% Hohner's annual unit sales = 800,000 (75% of market share) Variable manufacturing cost per unit = 2.70 Fixed manufacturing costs = 900,000 Annual advertising budget = 500,000 Manager's salary and expenses = 35,000 Salespeople commission = 10% of Hohner's sales Shipping, breakage, and insurance cost per unit = 0.60
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