What price should you charge for a razor and for a blade, Operation Management

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What price should you charge for a razor and for a blade

Problem

Solve in Excel using the Solver Feature and provided detailed steps that are easy to follow throughout the process.

In the razorsandblades.xls file example, suppose the cost to produce a blade is $0.20. If you charge $0.35 for a blade, a customer buys an average of 50 blades from you. Assume the price elasticity of demand for blades is 3. What price should you charge for a razor and for a blade?

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