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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 \$125 in total.
Mattel is currently considering two pricing strategies:

Ã¢â¬Â¢
Strategy 1: Sell each doll for \$32 and each accessory for \$32

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Strategy 2: Sell each doll for \$3 and each accessory for \$61

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

\$125 Value, 2 Accessories

(\$)

(\$)

(\$)

Strategy 1

\$32 doll + \$32 accessory

Strategy 2

\$3 doll + \$61 accessory

The strategy that generates the most revenue is strategy ?

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