Use Excel Solver to determine the optimal price for a single
product. Use the information below to formulate your pricing
optimization problem.

– Demand as a function of price: D(p)=2000-10p

– Unit variable cost of product: c=$8 per unit

– Price must be no more than $110 per unit to be competitive in
the marketplace.

a) Provide the algebraic (mathematical) formulation of the
pricing optimization problem that maximizes the total
contribution.

b) Determine the optimal solution of the problem using Excel
Solver. Select the GRG Nonlinear as your solving method in the
Solver Parameters window before you solve the problem.

i. Present a screenshot of your Excel spreadsheet model,
including the row and column headings.

ii. Present a screenshot of the Solver Parameter Window after
you build your Solver model.

iii. Present a screenshot of your Excel spreadsheet model that
shows the optimal solution, including optimal values of the
decision variable(s) and the optimal value of the objective
function.