Question: Can you use excel to solve this problem? Enwin Utilities faces daily demands for electricity during both peak-load and off-peak load times. Enwin must determine

Can you use excel to solve this problem?

Enwin Utilities faces daily demands for electricity during both peak-load and off-peak load times. Enwin must determine the price per kilowatt hour (kwh) to charge during both peak and off-peak periods. The daily demand for power during each period (in kwh) is related to price as follows:

1= 60 -0.51 + 0.11

2= 40 -2 + 0.1P2

where 1 and 1 are demand and price during peak times, whereas 2 and 2 are demand and price during off-peak times. It costs Enwin $10 per day to maintain 1 kwh of (production) capacity. The company wants to determine a pricing strategy and capacity level that maximize its daily profit. Formulate a nonlinear optimization model for this problem by stating the decision variables, the objective function, and all relevant constraints. Use the Excel Solver to solve the model. What is the optimal solution and value of the objective function?

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