Reference no: EM132013082
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 $80. Each of the high-value consumers buys one doll and two accessories and is willing to pay $157 in total.
Mattel is currently considering two pricing strategies:
- Strategy 1: Sell each doll for $40 and each accessory for $40
Strategy 2: Sell each doll for $3 and each accessory for $77
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 CustomersRevenue from High-Value CustomersTotal Revenue from Strategy$80 Value, 1 Accessory$157 Value, 2 Accessories($)($)($)Strategy 1$40 doll + $40 accessoryStrategy 2$3 doll + $77 accessory
The strategy that generates the most revenue is strategy.
|
How relevant has studying biological psychology been
: How relevant has studying biological psychology been to your life, and how will you apply what you have learned in this course to your life?
|
|
What are the fixed costs and what are the sunk costs
: Their marginal cost, which is mostly labor, maintenance and ingredients (Barley, Hops and Yeast) is 2 per unit. What are the fixed costs and what are the sunk
|
|
Charge for each version of the software
: (a) What are the optimal prices that you would charge for each version of the software?
|
|
Profit-maximizing price for a video game console
: My company needs to determine the profit-maximizing price for a video game console. My company currently charges $180 and manages to sell 2 million consoles per
|
|
Types of consumers who purchase its dolls
: Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers
|
|
Determine what is required in a substantive response
: Provide a substantive contribution that advances the discussion in a meaningful way by identifying strengths of the posting, challenging assumptions.
|
|
Labor-maintenance and ingredients
: Their marginal cost, which is mostly labor, maintenance and ingredients (Barley, Hops and Yeast) is 2 per unit. How do I draw a graph of the marginal cost curve
|
|
How australia can survive without stable exchange rate
: And how Australia can survive without stable exchange rate?
|
|
Discuss the structure of the united states hc system
: Discuss the structure of the United States' HC system. Is it a sector or an industry? Why or why not? What level is HC regulated at?
|