You are going to start a small business to sell premium cupcakes.  The demand for cupcakes will depend on your selling price.  If the selling price is p, then the monthly demand for your cupcakes (in units) is:monthly demand=50000-1500*p.You have a budget of $25,000 for production cost to start up your business in the first month.  Due to economy of scales, the average production cost of each cupcake decreases as production increases.  The cost of producing x cupcakes is: cost=6x+ √(15x)You should only produce as many cupcakes as you can sell, and you cannot sell more cupcakes than you produce.  Your goal is to maximize your revenue = monthly demand×price for the first month.Normal 0 0 2 false false false EN-US ZH-TW AR-SA /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin-top:0cm; mso-para-margin-right:0cm; mso-para-margin-bottom:8.0pt; mso-para-margin-left:0cm; line-height:107%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:”Calibri”,sans-serif; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:Arial; mso-bidi-theme-font:minor-bidi; mso-fareast-language:ZH-CN;}Questions:1.      Write a non-linear program for the optimization problem.  Allow non-integer solutions!2.      Set up an Excel spreadsheet.  Compute the optimal production and pricing plan using Solver with central differencing.3.      Suppose you want to run Excel with multistart.  To save some searching time, list some reasonable bounds to impose on your decision variables.  Show/explain your solution. ·         Hint:  You should not use your solution from Q2!  What is the largest price without making demand negative?  What is the minimum cost per cupcake? ·         You do not need to set up Solver for this question.4.      Make a new tab and copy your NLP from Question 2.  Suppose you do not have a production budget and can produce as many cupcakes as you want.  Remove the appropriate constraints and re-run Solver to obtain the optimal price.  Why is it not optimal to produce an infinite number of cupcakes?

Why Choose Us

  • 100% non-plagiarized Papers
  • 24/7 /365 Service Available
  • Affordable Prices
  • Any Paper, Urgency, and Subject
  • Will complete your papers in 6 hours
  • On-time Delivery
  • Money-back and Privacy guarantees
  • Unlimited Amendments upon request
  • Satisfaction guarantee

How it Works

  • Click on the “Place Order” tab at the top menu or “Order Now” icon at the bottom and a new page will appear with an order form to be filled.
  • Fill in your paper’s requirements in the "PAPER DETAILS" section.
  • Fill in your paper’s academic level, deadline, and the required number of pages from the drop-down menus.
  • Click “CREATE ACCOUNT & SIGN IN” to enter your registration details and get an account with us for record-keeping and then, click on “PROCEED TO CHECKOUT” at the bottom of the page.
  • From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it.