Reference no: EM131225935
A real estate developer is planning to build an office complex. Currently, there are three office sizes under construction; small, medium, and large. Small offices can be rented for $650 per month, medium offices can be rented for $780 per month, and large offices can be rented for $1100 per month. Each small office requires 430 square feet of space, each medium office requires 600 and each large office requires 850 square feet. The current plot of land available to the developer is 50,000 square feet. The developer wants to ensure that the office complex has at least 5 units of each office size. Moreover, zoning restrictions limit the total number of offices to 45.
a) Formulate a Linear Program that determines how many of each office size should be built to maximize revenue from rentals.
b) Use Excel solver to model and solve the problem. Attach four snapshots of your setup: Final look, Formula view, Solver menu, Sensitivity report (Answer report optional).
Use the answer report and/or sensitivity report to answer the questions below (i.e. do not modify and re-solve the model to answer any of the following parts).
c) How many small, medium, and large offices should the developer build? What is the total optimal monthly revenue?
d) Which constraints are binding? Which constraints are non-binding?
e) How much square footage would remain unused if the developer implements the optimal solution?
f) What would be the impact on the optimal number of offices and the total rental revenue (OFV) if small offices can be rented for $800/month rather than $650/month?
g) What would be the impact on the optimal number of offices and the total rental revenue (OFV) if medium offices can be rented for $680/month instead of $780/month?
h) What would be the impact on the optimal number of offices and the total rental revenue (OFV) if medium offices can be rented for $1150 rather than $780/month?
i) Suppose that the square footage available to the developer decreases to 35,000 square feet. What impact would this have on the total rental revenue (OFV)?
j) Suppose that the minimal number of small offices that the developer needs to build changes to 8 offices. What impact would this have on the total rental revenue (OFV)?
k) Suppose that new zoning restrictions will require no more than 40 office spaces on this land (instead of 45). What impact would this have on the total rental revenue (OFV)?
|
How much will my investment be worth in 9 years
: Assuming that these rates are sustained, how much will my investment be worth in 9 years? (Round your answer to the nearest cent.)
|
|
What would happen if organelle replication did not occur
: What would happen if organelle replication did not occur for C. reinhardtii? When answering this question think about the purpose/function of each organelle, and include this in your answer.
|
|
What are the main goals of the federal open market committee
: FOMC : What are the main goals of the Federal Open Market Committee (FOMC)? - How does it attempt to achieve these goals?
|
|
Determining the performance incentives
: Compare and contrast when it would be preferable to motivate employee performance through short-term incentives versus long-term incentives, and vice-versa.
|
|
Which constraints are binding-constraints are non-binding
: A real estate developer is planning to build an office complex. Currently, there are three office sizes under construction; small, medium, and large. Formulate a Linear Program that determines how many of each office size should be built to maximize ..
|
|
Douglas mac arthur as a strategic leader i
: Individually write a 500- 700word APA style essay on the following: Douglas Mac Arthur as a strategic leader I'
|
|
Describe the functions of the fed district banks
: The Fed Briefly describe the origin of the Federal Reserve System. - Describe the functions of the Fed district banks.
|
|
Explanation of the various cost variables
: Focus particularly on those works that address main ideas in the field, spell out areas of controversy, and indicate areas of incomplete knowledge and relate them to the envisioned study's problem, purpose, and research questions. Use the peer-rev..
|
|
Information on writing a business memo
: Business Writing Skills for more information on writing a business memo. Internal Controls more information on the topic of internal control.
|