Queen City Cable (QCC) is interested in trying bundle pricing for its offerings of cable television, cell phone service, and internet service, with the goal of maximizing revenue. The following table shows the current proposal from QCC pricing analysts for each type of service per month.

The analysts feel that no single service’s monthly price should be more than \($100\) for cable TV, no more than \($200\) for cell phone service, and no more than \($100\) for internet service. Also, no two-service bundle’s monthly price should be more than \($250\), and the bundle price for all three services per month should not be more than $350.
The file cablebundle contains data from 100 survey respondents regarding what they would be willing to pay individually per month for cable TV, cellphone service, and internet service.

a. Build a spreadsheet model similar to the model in the file mtairy that was discussed in section 16.6 to maximize revenue.

b. Solve the model you constructed in part a using the Evolutionary method with the default options but with the Random Seed to 1989. If Solver asks if you want to stop or continue, select Stop and accept the current solution. What is the maximum revenue?

c. What is the percentage improvement in revenue from the solution found using the Evolutionary method over the proposed pricing strategy?

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Individual Services Two-Service Bundles Three-Service Bundle $90 Cable TV + Cell Phone $225 Cable TV + Cell Cable TV Phone + Internet Cell Phone $150 Cable TV + Internet $225 Internet $80 Cell Phone + Internet $225 $300