A local pharmacy orders 15 copies of a monthly magazine


Use the following story problem to answer the next set of questions.

A local pharmacy orders 15 copies of a monthly magazine. Depending on the cover story, demand for the magazine varies. The pharmacy purchases the magazines for $2.25 and sells them for $5.00. Any magazines left over at the end of the month are donated to hospitals and other health care facilities. Model this newsvendor problem in Excel. Test your model to show the corresponding profit when demand is for the month 5, 10, and 20 magazines.  

**There should be 3 answers, one answer for each demand number (5, 10, and 20)

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Business Management: A local pharmacy orders 15 copies of a monthly magazine
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