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Solver problem/help in excel 2007

  1. #1
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    Solver problem/help in excel 2007

    I have to use a solver for Baylee Byrd Playsets, Inc..xlsx Problem is Mr. Byrd wants a net margin ratio of 15%. Using Solver, adjust the values for the revenue and number of units sold. Revenue cannot exceed $1100 per unit. Number of units sold cannot exceed 250, and and total variable expenses cannot exceed $110,000. In order to have a net margin of 15%, how many playsets will Mr. Byrd have to sell? What price should he charge. Generate an answer report. I have an example in the excel file, but I can't figure out how to do it for an updated (current) solve. Thank you. Any expedience in an answer would be appreciated.

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    Forum Expert Alf's Avatar
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    Re: Solver problem/help in excel 2007

    Since the Board of Education and this Forum’s administration do not take kindly to those who do home work for others I’ll instead pass on some hints.

    In your present Solver setup you have 1 constraint i.e. the range B4 is set to be an integer.

    What you need now is to add constraints for instance a constraint to ensure that the number of units sold is equal to or less than 250.

    Then revenues pr unit as well as variable expenses are also constraints so you need to add these.

    Finally you must ask yourself what do Mr. Byrd wish to achieve? That must be the “Set Objective” in the Solver setup.

    Alf

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