Haley:

I think we need to think of some way to increase our profitability. Do you have any ideas?

Dan:

Well, I think the best strategy would be to become aggressive on price.

Haley:

How aggressive?

Dan:

If we drop the price to $$60$ per unit and maintain our advertising budget at $$15,000,000,$ I think we

will generate sales of $2,000,000$ units.

Haley:

I think that's the wrong way to go$.$ You're giving too much up on price. Instead, I think we need to

follow an aggressive advertising strategy.

Dan:

How aggressive?

Haley:

If we increase our advertising 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. We'll never cover the increased advertising costs.

Sally:

If we reduce the anticipated selling price by $10\%,$ we can generate sales of $1,500,000$ video

games. Although it will increase the cost, we should reward our sales associates with a $$3$ sales

commission for each unit sold. Also, let's find a way to reduce the production cost to $$8,000,000.$