# A if retailer margins are raised to 40 next year how

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a. If retailer margins are raised to 40% next year, how many Marine Bands must Hohner sell to break even?
Sheldon FredricksonCase Study: Hohner Break-Even Analysis10/1/2019Retail Price = €30 [40%]Distributer’s Price = €21.429 [12%]Hohner’s Selling Price = €19.133Contribution Margin per unit = Selling Price per unit – Variable Cost per unit = €19.133 - €2.70 -€16.433Fixed Expenses:Manufacturing Costs = €900,000Advertising Budget = €500,000Salary and Expenses = €35,000Salespeople = [10% of (800,000*19.133)] = €1,530,640Shipping costs incurred = €0.60*800,000 = €480,000Fixed Cost Summation = €3,445,640Break-Even Point in units = €3,445,640 / €16.433 = roughly 209,678 unitsb. 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?