Office size should be built to maximize revenue from rental

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1. 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.

Reference no: EM131228384

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