Rock Bottom Golf is an online golf equipment retailer that sells clubs, shoes, balls, and other golfing equipment. Rock Bottom's regular prices are lower than most competitors, but they go even lower with limited-time promotional pricing, especially around major holidays. For example, the Father's Day promotion offers $50 to $75 off Rock Bottom's already-low price on select clubs and range finders that normally cost hundreds of dollars. One current offer is $100 off the Tour Edge E529 Driver that Rock Bottom normally sells for $399.99. To get the word out about the offer, Rock Bottom spent $15,000 on banner ads on golf-related websites like golfchannel.com and pga.com. Rock Bottom understands that promotional pricing cuts into its profits for each sale but also knows that such time limited pricing generates excitement and a sense of urgency among buyers. In fact, Rock Bottom's research of past Father's Day promotions shows that shoppers are mostly men buying the clubs and gadgets for themselves!

Assuming Rock Bottom's cost of goods sold (COGS) is 55 percent, calculate Rock Bottom's margin per driver before the $100 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 3: Marketing by the Numbers to learn how to perform this analysis.

Data from appendix 

This price is higher than the break-even price of $152 and covers costs, that price  assumed a demand of 1.5 million units. But how many units and what level of dollar sales  must Wise Domotics achieve to break even at the $171 price? And what level of sales must  be achieved to realize various profit goals? These questions can be answered through  break-even and margin analysis.