Suppose Mattel, the producer of Barble dolls and accessorles (sold separately), has two types of consumers who purchase Its dolls: low-valueconsumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to payof $44. Each of the high-value consumers buys one doll and two accessorles and Is willing to pay $82 In total.Mattel Is currently considering two pricing strategles:• Strategy 1: Sell each doll for $22 and each accessory for $22• Strategy 2: Sell each doll for $6 and each accessory for $38In the following table, Indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategyis applied to one low-value and one high-value customer, indicate the total revenue for each strategy.Revenue from Low-ValueRevenue from High-ValueTotal Revenue fromCustomersCustomersStrategy$44 Value, 1 AccessoryS82 Value, 2 Accessories(s)($)(s)Strategy 1$22 doll + $22accessoryStrategy 2$6 doll + S38 accessoryThe strategy that generates the most revenue is strategy00

Gross revenue, is how much cash your business creates from selling your items or administrations…

cegy 1: Sell each doll for $22 and each accessory for $22 egy 2: Sell each doll for $6 and each accessory for $38 owing table, indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategy to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Revenue from High-Value Total Revenue from Customers Customers Strategy $44 Value, 1 Accessory S82 Value, 2 Accessories (s) ($) ($) y 1 loll + $22 sory

cegy 1: Sell each doll for $22 and each accessory for $22 egy 2: Sell each doll for $6 and each accessory for $38 owing table, indicate the revenue for a low-value and a high-value customer under strategy I and strategy 2. Then, assuming each strategy to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Revenue from High-Value Total Revenue from Customers Customers Strategy $44 Value, 1 Accessory S82 Value, 2 Accessories (s) ($) ($) y 1 loll + $22 sory

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to pay of $60. Each of the high-value consumers buys one doll and two accessories and is willing to pay $114 in total. Mattel is currently considering two pricing strategies: Strategy 1: Sell each doll for $30 and each accessory for $301 Strategy 2: Sell each doll for $6 and each accessory for $54 In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1 and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value customer, indicate the total revenue for each strategy. Strategy 1 $30 doll + $30 accessory Strategy 2 $6 doll + $54 accessory Revenue from Low-Value Customers $60 Value, 1 Accessory ($) $ $ The strategy that generates the…
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Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to pay of $48. Each of the high-value consumers buys one doll and two accessories and is willing to pay $93 in total. Mattel is currently considering two pricing strategies: • Strategy 1: Sell each doll for $24 and each accessory for $24 • Strategy 2: Sell each doll for $3 and each accessory for $45 In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1 and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value customer, indicate the total revenue for each strategy. Strategy 1 $24 doll + $24 accessory Strategy 2 $3 doll + $45 accessory Revenue from Low-Value Customers $48 Value, 1 Accessory ($) $ $ The strategy that generates the…
Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to pay of $44. Each of the high-value consumers buys one doll and two accessories and is willing to pay $82 in total. Mattel is currently considering two pricing strategies: • Strategy 1: Sell each doll for $22 and each accessory for $22 • Strategy 2: Sell each doll for $6 and each accessory for $38 In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1 and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value customer, indicate the total revenue for each strategy. Revenue from Low-Value Customers Revenue from High-Value Customers Total Revenue from Strategy $44 Value, 1 Accessory $82 Value, 2…
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