Use the information below to answer the following questions.
A real estate developer is planning to build an office complex.Currently,there are three office sizes under consideration: small,medium,and large.Small offices can be rented for $600 per month,medium offices can be rented for $750 per month,and large offices can be rented for $1000 per month.Each small office requires 600 square feet,each medium office requires 800 square feet,and each large office requires 1000 square feet.The current plot of land available to the developer is 100,000 square feet.The developer wants to ensure that the office complex has at least 3 units of each office size.Moreover,zoning restrictions limit the total number of offices to 50.
-Use the Sensitivity Report to answer the following questions:
a.How many small,medium,and large offices should the developer build?
b.What is the total optimal monthly revenue?
c.Which constraints are binding? Which constraints are non-binding?
d.How much square footage would remain unused if the developer implements the optimal solution?
Correct Answer:
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Let X1 = no.of small office...
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