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 $64. Each of the high-value consumers buys one doll and two accessories and is willing to pay $123 in total.

Mattel is currently considering two pricing strategies:

Strategy 1: Sell each doll for $32 and each accessory for $32

Strategy 2: Sell each doll for $5 and each accessory for $59

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}

_{$64 Value, 1 Accessory $123 Value, 2 Accessories($)}

($)($)Strategy 1$32 doll + $32 __________________ ______________________ _________________________

accessory

Strategy 2$5 doll + $59 accessory __________________ ______________________ __________________________

The strategy that generates the most revenue is strategy 1 or 2.