Woodner Ltd provides a standard service. It is able to provide a maximum of 100 units of this service each week. Experience shows that at a price of £100, no units of the service would be sold. For every £5 below this price, the business is able to sell 10 more units. For example, at a price of £95, 10 units would be sold, at £90, 20 units would be sold and so on. The business’s fixed costs total £2,500 a week. Variable costs are £20 per unit over the entire range of possible output. The market is such that it is not feasible to charge different prices to different customers.

Required:

What is the most profitable level of output of the service?

AppendixLO1