Assumeyouarethemanufacturerandanswerthefollowingquestionsusingtheinformationin the case. Calculate answers to at least three decimal places except for unit calculations, whichshouldbe rounded upto the next full unit.

1. WhatistheunitcontributionforHohner?

1. WhatisHohnersbreak-evenpoint?

1. Whatmarket sharedoesHohnerneedtobreakeven?

1. WhatisHohnersprofit?

1. Industry demand is expected to increase to 900,000 units next year. Schmidt is consideringraisinghis advertising budget to 1million.

1. Iftheadvertisingbudgetisraised,howmanyunitsmustHohnerselltobreakeven?

1. HowmanyunitsmustHohnerselltoachievethesameprofit(intermsofdollaramount)nextyear as it earned this year?

1. WhatmustHohnersmarketsharebenextyearforitsprofit(intermsofdollaramount)tobe the same as this year?

1. After some reflection, Schmidt decided not to increase Hohners advertising budget. Withindustry demand expected to increase to 900,000 units next year, Schmidt thought he wouldgive retailers an incentive to promote the Marine Band by raising their margins from 33% to40%.Themarginincreasewouldbeaccomplishedbyloweringthemanufacturerspriceoftheproduct toretailers.Distributor margins would remainat 12%.

1. Ifretailermarginsareraisedto40%nextyear,howmanyMarineBandsmustHohnersellto break even?

1. HowmanyunitsmustHohnerselltoachievethesameprofit(intermsofdollaramount)nextyear as it earned this year?

1. WhatmustHohnersmarketsharebeforitsprofit(intermsofdollaramount)toremainatthis years level?