EXCEL
Section 8.1 Expanded: Constructing the nonlinear proft contribution expression Let Ps and Po represent the prices charged for each standard golf bag and deluxe golf bag respectively. Assume that "S" and "D" are demands for standard and deluxe bags respectively. S- 2250-15P D 1500-5P re.2) Revenue generated from the sale of S number of standard bags is P"s. Cost per unit production is $70 and the cost for producing S number of standard bags is 70 So the profit for producing and selling S number of standard bags revenue-cost Ps0 (8.3) By rearranging 8.1 we get 15Ps 2250-5 o P 2250/15-S/15or P-150-S/15 (8.3a) Substituting the value of P, from 8.3a in 8.3 we get the profit contribution of the standard bag (1s0-s/15)s-705 1505-/15-705- 80S-V15 (8.4) Revenue generated from the sale of D number of deluxe bags is P D.Cost per unit production is $150 and the cost for producing D number of deluxe bags is 150 D So the profit for producing and selling D number of deluxe bags revenue-cost PoD-1500 (8.4a) By rearranging 8.2 we get Po 1500-Do Po 1500/5-D/S or Po 300-D/s (8.4b) Substituting the value of Po from 8.4b in &Aa we get the profit contribution of the deluxe bag: By adding 8.4 and 8.4c we get the total profit contribution for selling 5 standard bags and D deluxe bags. Homework assignment 300 D/S)D-1500 3000 D7S-1500 1500-DS (8.4c) Total profit contribution 805-5/15 1500-DIS (8.5) Reconstruct new objective function for 8.5 by changing "15P to "8P in B.."5P% to "10P, in 8.2, cost per unit Sec Words: 30 of 455 MacBook Pro Total profit contribution # 80S-52/15 + 1500-Dys (8.5) Homework assignment: Reconstruct new objective function for 8.5 by changing "15Ps" to "8Ps" in 8.1, "5Po" to "10Po" in 8.2, cost per unit standord bog from 70 to "last two digits of your UTEP student ID" and cost per unit deluxe bag from 150 to 125. Keep other parameter values unchanged. Use up to 2 decimal points accuracy. Substitute the new expression for 8.5 in the excel solver workbook as explained in the class and solve for the optimal combination values for S and D. Submit the printout from the excel solution in either Mar 12 or Mar 14, 2019 class. Instructor will not accept any homework late or submitted outside the class. Make sure you submit the results (just one page excel printout). Write/type your full name (first name first) in upper case, last 4 of your UTEP student ID, and, your new objective function expression (like equation 8.5 above) on the printout. Use S and D instead of b15 or c15 in the formulation. If you fail to follow the instructions, you will lose points Pages: _ 1-of 1 - Sec 1 450.0f455...-T- words: MacBook Pro OD FA F5 F6 F7 F8 F9
