We continue Example 7.1, but we now assume that Madison manufactures its product in the United States and sells it in the United Kingdom (UK). Given the prevailing exchange rate in dollars per pound,...

We continue Example 7.1, but we now assume that Madison manufactures its product in the United States and sells it in the United Kingdom (UK). Given the prevailing exchange rate in dollars per pound, Madison wants to determine the price in pounds it should charge in the UK so that its profit in dollars is maximized. The company also wants to see how the optimal price and the optimal profit depend on exchange rate fluctuations.

Objective To use a nonlinear model to find the price in pounds that maximizes the profit in dollars.