Suppose Mattel, the producer of Barbie dolls and accessories (sold separately), has two types of consumers who purchase its dolls: low-value consumers and high-value consumers. Each of the low-value consumers tends to purchase one doll and one accessory, with a total willingness to pay of $60. Each of the high-value consumers buys one doll and two accessories and is willing to pay $117 in total.

Mattel is currently considering two pricing strategies:

Strategy 1: Sell each doll for $30 and each accessory for $30

Strategy 2: Sell each doll for $3 and each accessory for $57

In the following table, indicate the revenue for a low-value and a high-value customer under strategy 1 and strategy 2. Then, assuming each strategy is applied to one low-value and one high-value customer, indicate the total revenue for each strategy.

Revenue from Low-Value Customers Revenue from High-Value Customers Total Revenue from Strategy

Total Revenue from Strategy $117 Value, 2 Accessories

$60 Value, 1 Accessory

Strategy 1

$30 doll + $30 accessory

Strategy 2

$3 doll + $57 accessory

The strategy that generates the most revenue is strategy?

A)2

B)1