1. Assuming Rock Bottom’s cost of goods sold (COGS) is 60 percent, calculate Rock Bottom’s margin per driver before the $50 off promotional price and after the promotional price. What effect does the promotional pricing have on the margin Rock Bottom earns for every driver sold? Refer to Break-Even and Margin Analysis in Appendix 2: Marketing by the Numbers to learn how to perform this analysis. (AACSB: Communication;

Analytic Reasoning; Reflective Thinking)