Pоttery Bаrn hаs just lаunched the “Cоmfоrt Collection,” a new line of sofas and chairs. The basic sofa is priced near $1000, which is 25% below the company’s next-priced sofa. Though Pottery Barn has historically focused on higher priced products, the new “Comfort Collection” is an attempt to compete more effectively with lower-priced brands (e.g., IKEA and Rooms-to-Go) that offer good-enough quality with a focus on fewer key features. In addition to lower priced products, the company has invested a total of $2 million to cover fixed costs, in hopes that improvement to manufacturing will reduce its overall production costs. Pottery Barn’s competitors have responded by introducing their own lower-priced lines. After a month of sales, Pottery Barn’s sales compared to their two major competitors are as follows: COMPANY Units Produced & Sold Unit Price Unit Variable Cost Pottery Barn 32 $ 975 $650 Crate & Barrel 15 $ 3,100 $1,900 Rooms-to-Go 45 $ 800 $600