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DFR, Inc. manufacturers and markets children's toys. They recently changed from an average selling price of $15, at which they sold 1 millions toys...
DFR, Inc. manufacturers and markets children's toys. They recently changed from an average selling price of $15, at which they sold 1 millions toys annually, to a new price of $17. At the new higher price, unit sales are forecast to decline to 950,000. Variable cost per toy are $10.
What is DFR's "optimal" or "profit maximizing price"?