BERISCUSSION etails Lion Discussion initial Response Due by Wednesday: Lore Inchas finished a new virtual reality game, Sailor's Revenge Management is now considering its marketing strategies. The table below available to help with the decision Two managers, Shohreh Johnson, had the following discussion of ways to increase the profitability of this new offering Antonio I think we need to think of some way to increase our profitability. Do you have any ideas? Shohre: Well, I think the best strategy would be to become agressive on price. W we drop the price from 580 to $70 per unit and maintain our advertising budget at $10.000.000. I think we will generate total sales of 2.000.000 units. This would be twice our current unit wes expectations Antonic think that is the wrong way to go. You are going up too much on rice. Instead, I think we need to follow anessive advertising strategy we ncrease our advertising by $7,000,000 to a total of $17.000.000, we should be able to increase sales volume to 1.400.000 units without any che price Particulate Cunit contribution marge 2.contrato mong (3) contribution marginate and operation for three eritions. Details sion change in price Part 1: Calculate (1) unit contribution margin. (2) contribution margin (3) contribution margin ratio, and (4) operating income for all three options Part 2: Wich strategy is best and why? Discussion Response Due by Saturday: Respond to another student, Shohreh Antonio Current Anticipated sales price per $80.00 unit Variable cost per unit $35.00 Anticipated volume final 1,000,000 units Production costs $20.000.000.00 Anticoated advertising $10,000,000.00 Unit Contribution Margin Contribution Map Contribution Margin Ratio Operating Income 2 22 7 K. B N