If Mountain Goat’s markup percentage on selling prices is 35 percent, what margin will the retailer realize for each bike purchased during the premium offer? How many additional bikes would Mountain Goat need to sell to break even on this premium offer? Refer to BreakEven and Margin Analysis in Appendix 2: Marketing by the Numbers to learn how to perform this analysis.

(AACSB: Written and Oral Communication; Analytic Reasoning; Reflective Thinking)