Microsoft Office Tutorials and References
In Depth Information
Nonlinear Example Using the Solver
FIGURE 35.8 The Solver Used for Nonlinear Optimization
You would like to use the Solver to find the price level that will maximize your
Revenue. It is already obvious from the graph that the price level will be situated
between the $400 to the $500 range. Prepare the formula in cell C19 as shown in
Figure 35.7 and use the Solver to find the optimal solution.
This time you are dealing with a non-linear problem. See Figure 35.8 for the steps
taken to solve the problem.
1. Click on cell C19 and activate the Solver on the Data ribbon. The Target Cell is
C19. Select B19 as the Changing Cell.
2. Click on OK for the options and on the Solve button in the Parameters menu.
Solver will provide the results in the spreadsheet.
The results indicate that your best membership price level should be $416.67 and
your revenue will be $10,426.67.