A manufacturer is preparing to set the price on a new action game. Demand is thought to depend on the price and is represented by the model: D = 2,000 – 3.5P
The accounting department estimates that the total costs can be represented by: C = 5,000 + 4.1D
a. Develop a model for the total profit and implement it on a spreadsheet.
b. Develop a one-way data table to evaluate profit as a function of price (choose a price range that is reasonable and appropriate).
c. Use Solver to find the price that maximizes profit.