Hohner Marine Band harmonica retailed for €30 in Germany. German retailers generally insisted on a 33% margin and distributors took a 12% margin based on the selling price of each. Hohner and it's direct competitors sold a total of 800000 units annually with Hohners share at 75%. Hohner faced a variable manufacturing costs of €2.70 per marine band with fixed manufacturing costs of €900000 and annual advertising budget of €500000. The marine band managers salary and expenses totaled €35000. Marine band salespeople working for Hohner were paid solely by a 10% commission on Hohners sales. Shipping costs breakage and insurance were €0.60 per unit.
1. What is the unit contribution for Hohner based on the manufacturer selling price?
2. What is Hohners breakeven point?
3. What market share does Hohner need to breakeven?
4. What is Hohners profit ?