Profit Maximization: Equations. Dot.com Products, Inc., offers storage containers for fine china on the Internet. The company 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:

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

Question

Profit Maximization: Equations. Dot.com Products, Inc., offers storage containers for fine china on the Internet. The company 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:
 
A. Calculate the profit-maximizing activity level.
B. Calculate the company's optimal profit and return-on-sales levels.

Quizplus · Accepted Answer

The Answer of Profit Maximization: Equations. Dot.com Products, Inc., offers storage containers for fine china on the Internet. The company 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:
 
A. Calculate the profit-maximizing activity level.
B. Calculate the company's optimal profit and return-on-sales levels.