Suppose you are analyzing a rm that is successfully executing a strategy that differentiates its products from those of its competitors. Because of this strategy, you project that next year the rm will generate 6.0% revenue growth from price increases and 3.0% revenue growth from sales volume increases. Assume that the rms production cost structure involves strictly variable costs. (That is, the cost to produce each unit of product remains the same.)

Develop an example that outlines these variable.