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Calculate the revenue maximising sales quantity

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Reference no: EM132797381

AVX makes and sells a single product Z. The selling price and marginal revenue equations for product Z are as follows:

Selling price= 150 - 0.03x

Marginal revenue = 150 - 0.06x

problem 1: The variable costs are £30per unit and the fixed costs are £88,000 If the selling price was set to maximise revenue, calculate the revenue maximising sales quantity, the revenue maximising selling price and the resulting profit?

Reference no: EM132797381

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