The Brohas Company makes children's toys.One particular toy is projected to sell 50,000 units at $25 each and has the following standard costs:

Direct materials:

$6.00

Direct labor:

$4.00

Variable overhead:

$3.00

Fixed overhead:

$3.00

The marketing department has conducted a customer marketing survey and determined that if the price was reduced 10% then sales volume would increase 15,000 units. The factory has the capacity to produce the additional units.

Based on your incremental analysis of the potential change, should Brohas reduce the price 10%?Justify your answer with the appropriate calculations.