The Rainwater Brewery produces beer, which it sells to distributors in barrels. The brewery incurs a monthly fixed cost of $12,000, and the variable cost per barrel is $17. The brewery has developed the following profit function and demand constraint: maximize Z = vp - +12,000 - 17v subject to v = 1,800 - 15p Solve this nonlinear programming model for the optimal price (p).
The Rainwater Brewery produces beer, which it sells to distributors in barrels. The brewery incurs a monthly fixed cost of $12,000, and the variable cost per barrel is $17. The brewery has developed the following profit function and demand constraint: maximize Z = vp - +12,000 - 17v subject to v = 1,800 - 15p Solve this nonlinear programming model for the optimal price (p).
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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The Rainwater Brewery produces beer, which it sells to distributors in barrels. The brewery
incurs a monthly fixed cost of $12,000, and the variable cost per barrel is $17. The brewery has
developed the following profit function and demand constraint: maximize Z = vp - +12,000 - 17v subject to v = 1,800 - 15p Solve this nonlinear programming model for the optimal price (p).
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