Answer:
$10
Step-by-step explanation:
Initial selling price per hat= $8
Number of hat sold= 6000
Revenue generated = $8*6000=$48000
Cost of producing hats = $4 per hat
Production cost = $4*6000=$24000
Profit = $48000-$24000=$24000
Increasing the price per hat by $2
Selling price per hat = $2+$8=$10
Number of hats sold are 500 fewer = 6000-500= 5500 hats
Revenue generated = $10*5500 = $55000
Cost of production is the same , where $4 per hat = $4*5500 =$22000
Profit generated = $55000-$22000 =$33000
This means at a price of $10 per hat , selling 500 fewer hats, the manufacture still makes a profit of $33000 which is $9000 more. It will be reasonable to hat at $10 because the profit will increase.
