Problem 16.7
Segment
Production Cost Price Demand Profit
Customized 300.00 $1,150.00 8,500 $7,225,000
Standard 200.00 $766.67 17,000 $9,633,333
Total 25,500 $16,858,333
Problem 16.7 (Using Solver and Equation 16.2)
Production Capacity = 20,000
Segment Price Demand
Production
Cost
Profit
Customized $1,287.50 7,125.00 300.00 $7,035,938
Standard $904.17 12,875.00 200.00 $9,066,146
Total 20,000.00 $16,102,083