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This season, a fruit wholesaler has 1000 lb of fresh strawberries for sale. Previous experience shows that demand is a function of the price it charges and is given by the following:
Demand = 1000 – 150 * Price
For instance, when the price is \$1.00 per lb, the demand is equal to 1000 – 150*1 = 850 lb. Any left-over strawberries will be purchased by a food processing plant at a price of \$0.10 per lb.
a) Develop a spreadsheet model for the total revenue (consisting of the revenue from the sale of fresh and left-over strawberries). For example, when the price is set to \$1.00 per lb, total revenue should be: 850 * \$1.00 + (1000-850) * \$0.10 = \$865. When the price is set to \$2.00 per lb, the total revenue should be: 700* \$2.00 + (1000-700) * \$0.10 = \$1430.
b) Develop a one-way data table to evaluate revenue as a function of price. The price range should go from \$0.00 to \$5.00 in increments of \$0.20.
c) Use Solver to find the price that maximizes revenue.

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