Case 11-3 Break-even analysis Aquarius Games Inc. has finished a new video game, Trathlon Challenge. Management is now considering its marketing strategies. The following information is available: Two managers, Haley Chipana and Dan Gillespie, had the following discussion of ways to increase the profitability of this new offering: Maley I think we necd to think of some way to increase our profitabiliay. Do you have any ideas? Dan Well, I think the best Mrategy would be fo become aggresive on price: Haby How angressive? Dam. If we drop the price to $60 per unit and mainatain our advertising budact at $15,000,000. I think we will generate sales of 2,000,000 units. Ihaley I think that's the wrong way to go. You're giviry too auch up on price. Instead, I think we need to follow an aggressive advertising strategy. Daw How agites wive? Maley: If we increase our achertising to a total of $20,000.000, we should be able to increase sales volume to 1,200,000 units without any change in price. Dan: I don't think that's reasonable. Well never cover the increased advertising costs Which strategy is best: Do nothing? Follow the advice of Dan Gallespie? Or follow Haley Chipana's strategy