What is slope of that demand-expected sales revenue

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1. 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.

Given the sales forecast at the higher price of $17, what is the expected sales revenue next year?

2. 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.

If the demand for DFR's product is linear, what is the slope of that demand?

Reference no: EM132298290

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