Quilted Products, Ltd., offers mail-order storage containers for fine china to newlyweds. The company

is thelow-cost provider 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:

TR = ($70 - $0.0005Q) Q

P = $ 70 - $0.0005QTC = 480,000 + 30Q

MR = $70 - $0.001QMC = 30

A.Calculate the profit- maximizing activity level.

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