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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
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
DemandPrice
The accounting department estimates that the total costs can be represented by
Total CostDemand
You were asked to develop a model for the total profit.
Total RevenueDemandPrice
Total ProfitTotal RevenueTotal Cost
Implement the model on a spreadsheet and use nonlinear optimization with Solver to find the price that maximizes profit. What is the total profit?
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