ezBike (ezB) is a mechanical and electric bike manufacturer. ezB had been a successful in Europe and is now looking to enter the North American market. To do so, ezB has hired a market research company which determines the retail price for an electric mountain bike is $1,500. Because ezB is unknown in North America, ezB partners with American Bike Manufacturer Schwinn to effectively market and sell its electric bike. Schwinn demands 25% gross profit on each electric bike sold. The market research company determines first year electric bike sales will be about 20,000. ezB requires a 15% return on sales (Operating Profit as a % of revenue) on each type of new bike it brings to market. The ezB development team estimates it will cost $1,500,000 to design and test this electric mountain bike. When completed, the bike will be sold to Schwinn in shipping containers which hold 40 bikes at a cost of $6,000 per container. ezB estimates it will spend $750,000 on marketing for this mountain bike during the first year of sales. ezB will allocate 2% of its selling price to Schwinn to cover accounting, billing, legal, and other corporate support costs performed by ezB corporate