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.