Hohner Musikinstrumente GmbH & Co. KG: Break-Even Analysis

Abstract

This exercise is one in a series intended to help students learn how to perform financial calculations in marketing contexts.

Helmut Schmidt, product manager for Hohner Musikinstrumente GmbH & Co. KG, the world's foremost manufacturer of harmonicas, accordions, melodicas, and ukuleles, was sitting at his desk reviewing his first assignment from the company's senior executive team. Schmidt had been asked to calculate the break-even point for the company's flagship product, the Marine Band harmonica, under a number of different scenarios.

After completing the exercise, students should be able to:

• Calculate unit contribution and margin

• Calculate break-even units and market share

Citation

Hennessy, J. and Meagher, E. (2017), "Hohner Musikinstrumente GmbH & Co. KG: Break-Even Analysis", . https://doi.org/10.1108/case.kellogg.2016.000151