Answer:
Price it will be sold to make maximum profit = $6.5 each
Explanation:
The challenge is to maximize profit.
We can assign to be the number of dollars obtained per unit price per flashlight.
Recall:
Profit = Revenue - Cost
Revenue = price charged x number sold =
Cost = cost to produce a unit x number of units produced
Profit =
At the point of maximum profit, the change in profit with respect to price will be = 0. In mathematical terms, the derivative of the profit will be = zero
∴
from this, we can see that at maximum profit, x = 0.5
∴ Price it will be sold to make maximum profit = $6.00 + 0.5 = $6.5 each