McPherson Publishers is considering publishing five textbooks. The maximum number of copies of each textbook that can

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McPherson Publishers is considering publishing five textbooks. The maximum number of copies of each textbook that can be sold, the variable cost of producing each textbook, the selling price of each textbook, and the fixed cost of a production run for each book are given in the file P06_55.xlsx. For example, producing 2000 copies of book 1 brings in a revenue of (2000)(50) = $100,000 but costs 80,000 + 25(2000) = $130,000.

a. Determine how McPherson can maximize its profit if it can produce at most 10,000 books.

b. Use SolverTable to analyze the effect on the optimal solution of a change in the demand for book 1. Repeat for the demands for the other books.

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Practical Management Science

ISBN: 978-1305250901

5th edition

Authors: Wayne L. Winston, Christian Albright

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