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A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model D = 3,000-3P. The accounting department estimates that the total costs can be represented by C= 4,000 + 2D. Develop a model for the total profit. Implement the model on a spreadsheet and use nonlinear optimization with Solver to find the price that maximizes profit. The price that maximizes profit is P = $47.81 (Round to the nearest cent as needed.)

A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model D = 3,000-3P. The accounting department estimates that the total costs can be represented by C= 4,000 + 2D. Develop a model for the total profit. Implement the model on a spreadsheet and use nonlinear optimization with Solver to find the price that maximizes profit. The price that maximizes profit is P = $47.81 (Round to the nearest cent as needed.)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model D = 3,000-3P. The accounting department estimates that the total costs can be represented by C= 4,000 + 2D. Develop a model for the total profit. Implement the model on a spreadsheet and use nonlinear optimization with Solver to find the price that maximizes profit. The price that maximizes profit is P = $47.81 (Round to the nearest cent as needed.)
Transcribed Image Text:A manufacturer of kitchen appliances is preparing to set the price on a new blender. Demand is thought to depend on the price and is represented by the model D = 3,000-3P. The accounting department estimates that the total costs can be represented by C= 4,000 + 2D. Develop a model for the total profit. Implement the model on a spreadsheet and use nonlinear optimization with Solver to find the price that maximizes profit. The price that maximizes profit is P = $47.81 (Round to the nearest cent as needed.)
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