# optimal profit and return

QPL 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 aactivity level.

B.Calculate the co.'s optimal profit and return on sales levels.

please show steps.

https://brainmass.com/economics/price-levels/optimal-profit-return-18602

#### Solution Preview

I doubt if the demand function should be P=$70 - 0.0005Q

Then MR= 70-0.001Q

We write total cost function:

TC=Fixed ...

#### Solution Summary

The expert calculates the optimal profit and return on sales levels.

$2.19