Calculate the profit maximizing activity level

Reference no: EM1370351

PL offers mail-order storage containers for fine china. The co is the low cost provider of these quilted boxes with fixed costs of $480000per year, plus variable costs of $30per box. Annual demand and marginal revenue relations for the co. are:
P=$70 - $0.0005; MR=dTR/dQ = $70-$0.001Q
A. Calculate the profit maximizing activity level.
B.Calculate the co.'s optimal profit and return on sales levels.

Reference no: EM1370351

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