Question: Question 3:

The sales manager for an electronics retailer is trying to determine the sales mix that maximises the profit for one of its product lines. This product line is sold in three levels of content: Basic, Medium and High, which sell for £90, £130 and £190 respectively. The different levels of content of the product use the following inputs:

Formulate this problem as a linear program and use Excel’s Solver to arrive at a solution. Write a short report describing your procedure, justify your formulation and give a recommendation to the firm.