Case Detail

Case Summary

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

Case Number: 3-112-001, Year Published: 2012, Revision Date: December 15, 2014

HBS Number: KEL682

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Authors: Julie Hennessy; Evan Meagher

Key Concepts

Financial Analysis, Financial Planning, Marketing, Marketing Planning, Break-Even Margin

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.

Learning Objectives

After completing the exercise, students should be able to:
• Calculate unit contribution and margin
• Calculate break-even units and market share

Number of Pages: 5

Extended Case Information

Teaching Areas: Marketing

Teaching Note Available: Yes

Geographic: Trossingen, Germany

Industry: Musical Instrument Manufacturing

Organization Name: Hohner Musikinstrumente GmbH & Co. KG

Decision Maker Position: Product Manager

Decision Maker Gender: Male