In anticipation of the upcoming South African Games, GPF is launching a new souvenir line called Hopola SA onto the market and is trying to decide on the right launch price for the product. The products expected life is three years. Given the high level of costs that have been incurred to develop the product, GPF wants to ensure that it sets its price at the right level. It has consulted a market research company to help it do this. The research, which relates to similar but not identical products launched by other companies, has revealed that at a price of R60, annual demand would be expected to be 250 000 units. However, for every R2 increase in selling price, demand would be expected to fall by 2 000 units. For every R2 decrease in selling price, demand would be expected to increase by 2 000 units. A forecast of the annual production costs that would be incurred by GPF in relation to the new product are as follows: Annual production (units) 200 000 250 000 300 000 350 000 R R R R Direct material 2 400 000 3 000 000 3 600 000 4 200 000 Direct labour 1 200 000 1 500 000 1 800 000 2 100 000 Overheads 1 400 000 1 550 000 1 700 000 1 850 000 Calculate the optimum (profit-maximising) selling price for the new product, Hopola SA, and calculate the resulting profit for the period. Note: if P = a bx, then MR = a 2bx