GameFan Inc. manufactures game systems. GameFan has decided to create and market a new system with wireless controls and excellent video graphics. GameFan's managers are thinking of calling this system the Yew. Based on past experience, they expect the total life cycle of the Yew to be four years, with the design phase taking about a year. They budget the following costs for the Yew: (Click the icon to view the budget.) Required Requirement 1. Suppose the managers at GameFan price the Yew game system at $76 per unit. How many units do they need to sell to break even? (Round your answer up to the nearest whole unit.) GameFan will need units to break even. Budget Total fixed costs over four years Variable cost per unit Year 1 R&D costs $ Year 1 Years 2-4 Design costs Production Years 2-4 Marketing and distribution Years 2-4 Customer service 7,100,000 1,640,000 20,200,000 6,150,000 2,350,000 $34 per unit 11 per unit - Required 1. Suppose the managers at GameFan price the Yew game system at $76 per unit. How many units do they need to sell to break even? 2. The managers at GameFan are thinking of two alternative pricing strategies. a. Sell the Yew at $76 each from the outset. At this price, they expect to sell 1,560,000 units over its life cycle. b. Boost the selling price of the Yew in year 2 when it first comes out to $88 per unit. At this price, they expect to sell 1,080,000 units in year 2. In years 3 and 4, drop the price to $76 per unit. The managers expect to sell 325,000 units in years 3 and 4 (240,000 in year 3 and 85,000 in year 4). Which pricing strategy is recommended? Explain. 3. What other factors should GameFan consider in choosing its pricing strategy