Calculate the profit-maximizing activity level

Reference no: EM1370107

Dot.com Products, offers storage containers for fine china on the Internet. The corporation is the low-cost retailer of these quilted boxes with fixed costs of $480,000 per year, plus variable costs of $30 for each box. Annual demand and marginal revenue relations for the company are:

P=$70-$0.0005Q

MR=dTR/dQ = $70- $0.001Q

A. Calculate the profit-maximizing activity level.
B. Calculate the company's optimal profit and return-on-sales levels.

Reference no: EM1370107

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