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 $76. Each of the high-value consumers buys one doll and two accessories and is willing to pay $147 in total.Mattel is currently considering two pricing strategies:

•	Strategy 1: Sell each doll for $38 and each accessory for $38
•	Strategy 2: Sell each doll for $5 and each accessory for $71

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
$76 Value, 1 Accessory	$147 Value, 2 Accessories	($)
($)	($)
Strategy 1
$38 doll + $38 accessory
Strategy 2
$5 doll + $71 accessory