3. DVD Sales Hans Hultgren, the sales manager for DVD Sales, wants to maximize h

Question

3. DVD Sales Hans Hultgren, the sales manager for DVD Sales, wants to maximize his profit on the sale of portable DVD players. He already has two portable models he plans to sell: Products Retail Price Wholesale Cost Panasonic DVD–LS50 $349.95 $192.47 Mintek MDP–1810 $199.95 $109.99 Hans needs your help in calculating his maximum profit. First, he would like you to use the Web to locate the retail price of two other portable DVD players not listed in the table above. The wholesale price of each unit is 55 percent of the retail price for both units you find. Hans has two constraints: 1. Hans has $200,000 to purchase new DVD players. The total wholesale cost of the four types of DVD units must be less than $200,000. 2. Hans must purchase a minimum of 100 units of each player from his wholesaler. You want to use Excel Solver to maximize the total profit for Hans with the constraints mentioned above and limiting the number of units to positive integers.

Explanation / Answer

Therefore, Sales manager should purchase 707 units of DVD-LS50 and 100 units of the remaining DVD players to maximize the profit and satisfy the constraints.

DVD player 1 2 3 4 Wholesale price 192.47 109.99 280.731 248.5285 Retail price 349.95 199.95 510.42 451.87 Profit per unit 157.48 89.96 229.689 203.3415 Variables 707 100 100 100 Maximum profit 163636.395 Constraints 1. Amount 200000 <= 200000 2. No. of players each player >= 100

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