Insurance provider with fixed cost of $8 million per year, plus variable cost of $750 for each driver insured on an annual basis P $1500 0 005Q MR TR Q $1,500 $0 01Q Calculate the profit maximizing activity lever Calculate the company 's optimal profit and return on sales levels ...

P 1500 0005Q TR PQ TR 1500Q 0005Q 2 MR TR Q 1500 00 ...

Insurance provider with fixed cost of $8 million per year, plus variable cost of $750 for each

Question:

Insurance provider with fixed cost of $8 million per year, plus variable cost of $750 for each driver insured on an annual basis. P= $1500 - 0.005QMR=ΔTR/ΔQ=$1,500 - $0.01QCalculate the profit maximizing activity lever. Calculate the company's optimal profit and return-on-sales levels.

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