# Can't solve problem

1. Sep 12, 2009

### ojsimon

Hi

I am trying to do this manually without excel, http://office.microsoft.com/en-us/help/HA100242441033.aspx [Broken]

I have come to the two equations:
u=30000*(1+((x/20)-1)*-1.1)
m=(u*(x-10))-300000

where u= optimum units sold
x= optimum price
m=margin with optimum price

I have tried simplifying these together and optimising it, but keep getting the wrong answer. Could anyone help me by providing a solution to it which matches the one on microsoft's website?

Thanks

Last edited by a moderator: May 4, 2017
2. Sep 12, 2009

### CFDFEAGURU

Solving this system requires iterations. You need to make a "guess" at the values of u and m and also apply the constraints to the equations. Once that is done, you solve the equations with the "guess" value store those results, solve the system with the new values, compare the results, and keep doing this until you have reach the convergence tolerance. This can tedious by hand if the system requires a lot of iterations to converge, that is why having a computer program do it for you is much more efficient.

Thanks
Matt

3. Sep 12, 2009

### ojsimon

thanks but just managed to solve it the normal way, just took ages and lots of working