=+2 The managers at Insync Ltd are thinking of two alternative pricing strategies:

a Sell the Boast at $110 each from the outset. At this price they expect to sell 1500000 units over its life cycle.

b Boost the selling price of the Boast in year 2 when it first comes out to $240 per unit. At this price they expect to sell 100000 units in year 2. In years 3 and 4 drop the price to $110 per unit. The managers expect to sell 1200000 units in years 3 and 4 combined.

Which pricing strategy would you recommend? Explain.