1. For this discussion board, I would like you to discuss the sales strategy of Buscemi company. The sales price per unit is very high. What do you think their cost per unit is? What about the contribution margin? If they decided to produce more units, what do you think would happen to sales price per unit, variable cost per unit, and contribution margin per unit? Can you name another company that follows a similar strategy?

The following is an article from the textbook. Take a minute to read it. IN BUSINESS WOULD YOU PAY $800 FOR A PAIR OF SNEAKERS? CAstrid Stawiarz/Goodman's Men's Store Getty Images Some companies rely on sales volume to drive profits whereas others rely on scarcity to increase margins and profits. Buscemi sneakers burst on to the market for $760 a pair and soon climbed to $865 a pair. The company purposely limits production to drive up Its prices. It Initially produced a batch of 600 pairs of sneakers that sold out In days. Then the company released 4,000 additional pairs that were sold out by the time pop star Justin Bieber posted a picture of his gold-colored Buscemis on Instagram. Its next step was to release 8,000 more pairs to about 50 stores. Although Buscemi could almost certainly increase production and unit sales, the company chooses to limit availability to add to the mystique (and price) of the brand. Source: Hannah Karp, "An $800 Sneaker Plays Hard to Get." The Wall Street Joumal July 28, 2014, pp. 81 and 87 Directions