Answer:
$290
Step-by-step explanation:
Costing price of a toy bear = $5.00
Selling price of a toy bear = $34.00
Profit comes from each toy bear = 34.00 - 5.00
= $29.00
Company can sell the number of toy bears each week = 560
The profit for the week = 560 × 29.00 = $16,240
If the company decrease $0.50 in the price.
The new price would be = $34.00 - $0.50
= $33.50
The profit from each bear = 33.50 - 5.00 = $28.50
They can sell 20 more bears.
Now the number of sale of bears = 560 + 20
= 580
Now the profit for the week = 580 × 28.50
= $16,530
The price that will maximize the profit = 16,530 - 16240
= $290
