[Case Study: Schwinn Bicycles; This case discusses the situation facing the management of Schwinn Bicycles in 1995. The company has a product line with a broad price range and an image that appeals to the older market but less so to younger. high-tebh oriented mountain bikers. The challenge in the case is to evaluate the situation. the pricing strategy and the decision to invest ado million in the company. 1. Evaluate Schwinn's strategy of selling hikes for prices from $100 to 2.500. 2. Evaluate ZelllChilmark's decision to invest Sou million in Schwinn. What did it get for its money'?I Calculate the breakeven and payback period for this investment given the following assumptions: Schwinn has 4 percent of the retail bike market: Schwinn bikes are marked up an average of 20 percent at retail: Schwinn has a 25 percent prot margin on its bikes. Epilogue Shortly aftEr this case was written. Schwinn merged with GT Bicycles and formed the SchttrinanT Corporation. Atorce in bike technology. innovation and production development. Schwinru'IST Corporation became the dominant force in bikes and accessories through the independent bicycle dealer channel. However. the company eventually filed for bankruptcy in 2001. On September 11. 2001. Pacic Cycle. the nation's largest importer of quality bicycles. purchased the SchwinanT Corporation out of bankruptcy