Assume the demand for a company’s drug Wozac during the current year is 50,000,
Assume the demand for a company’s drug Wozac during the current year is 50,000, and assume demand will grow at
5% a year. If the company builds a plant that can produce x units of Wozac per year, it will cost $16x. Each unit of Wozac is sold for $3. Each unit of Wozac produced incurs a variable production cost of $0.20. It costs $0.40 per year to operate a unit of capacity. Determine how large a Wozac plant the company should build to maximize its expected profit over the next 10 years.
I want to know how the calculations are done in Excel. This question is based on spreadsheet modeling. Please help me