b. How many units must Hohner sell to achieve the same profit (in terms of dollar amount) next year as itearned this year?
c. What must Hohner’s market share be next year for its profit (in terms of dollar amount) to be the same as this year?
6. After some reflection, Schmidt decided not to increase Hohner’s advertising budget. With industry demand expected to increase to 900,000 units next year, Schmidt thought he would give retailers an incentive to promote the Marine Band by raising their margins from 33% to 40%. The margin increase would be accomplished by lowering the manufacturer’s price of the product to retailers. Distributor margins would remain at 12%.