You are going to start a small business to sell premium cupcakes. The demand for cupcakes will depend on your selling price. If the selling price is , then the monthly demand for your cupcakes (in units) is: = 50000 1500 . You have a budget of $25,000 for production cost to start up your business in the first month. Due to economy of scales, the average production cost of each cupcake decreases as production increases. The cost of producing cupcakes is: = 6 + 15 You should only produce as many cupcakes as you can sell, and you cannot sell more cupcakes than you produce. Your goal is to maximize your revenue = for the first month.

(b) Set up an Excel spreadsheet. Compute the optimal production and pricing plan using Solver with central differencing.