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Pottery Barn has just launched the Comfort Collection, a new line of sofas and chairs. The basic sofa is priced near $ 1 0 0

Pottery Barn has just launched the "Comfort Collection," a new line of sofas and chairs. The basic sofa is priced near $1000, which is 25% below the company's next-priced sofa. Though Pottery Barn has historically focused on higher priced products, the new "Comfort Collection" is an attempt to compete more effectively with lower-priced brands (e.g., IKEA and Rooms-to-Go) that offer good-enough quality with a focus on a fewer key features. In addition to lower priced products, the company has invested a total of $2 million to cover fixed costs, in hopes that improvement to manufacturing will reduce its overall production costs.
Pottery Barn's competitors have responded by introducing their own lower-priced lines. After a month of sales, Pottery Barn's sales compared to their two najor competitors are as follows:
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