Final answer:
The suggested retail price for youth bikes is determined based on factors such as production cost, market demand, and competitors' pricing. It helps businesses determine their profit margins and competitive positioning.
Step-by-step explanation:
In Mikes Bikes, suggested retail price for youth bikes are determined based on various factors such as production cost, market demand, and competitors' pricing. The suggested retail price is the price at which the manufacturer recommends selling the youth bikes to customers.
For example, if the production cost of a youth bike is $100 and the company wants to make a 50% markup, the suggested retail price would be $150.
The suggested retail price is important for businesses as it helps determine their profit margins and competitive positioning in the market.