**Mattel Pricing Strategies Analysis**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**Revenue Table Analysis**The table below is used to calculate the revenue for a low-value and a high-value customer under both strategies. Then, by assuming each strategy is applied to one low-value and one high-value customer, it determines the total revenue for each strategy.| | Revenue from Low-Value Customers ($48 Value, 1 Accessory) | Revenue from High-Value Customers ($93 Value, 2 Accessories) | Total Revenue from Strategy ($) ||----------------------------------|--------------------------------------------------------|------------------------------------------------------------|---------------------------------|| **Strategy 1** | $24 doll + $24 accessory | | || **Strategy 2** | $3 doll + $45 accessory | | |Calculate the respective revenues for low-value and high-value customers under each strategy and determine which strategy generates the most revenue. Fill in the blanks in the table with the respective revenue figures.**Conclusion:**The strategy that generates the most revenue is strategy ____. Make sure to complete the analysis based on the given pricing structures for accurate insights.

Suppose Mattel , the producer of Barble dolls and accessories , has two types of customers who purchase it's dollar : low value consumers and high value consumers.

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Economics

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 most revenue is strategy Revenue from High-Value Customers $93 Value, 2 Accessories ($) $ $ Total Revenue from Strategy ($) $

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 most revenue is strategy Revenue from High-Value Customers $93 Value, 2 Accessories ($) $ $ Total Revenue from Strategy ($) $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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