A corporation plans on building a maximum of 11 new stores in a large city. They will build these stores in one of three sizes for each location - a convenience store (open 24 hours), standard store, and an expanded services store. The convenience store requires $4.125 million to build and 30 employees to operate. The standard store requires $8.25 million to build and 15 employees to operate. The expanded-services store requires $12.375 million to build and 45 employees to operate. The corporation can dedicate $82.5 million in construction capital, and 300 employees to staff the stores. On the average, the convenience store nets $1.2 million annually, the standard store nets $2 million annually, and the expanded services store nets $2.6 million annually. How many of each should they build to maximize revenue?
A corporation plans on building a maximum of 11 new stores in a large city. They will build these stores in one of three sizes for each location - a convenience store (open 24 hours), standard store, and an expanded services store. The convenience store requires $4.125 million to build and 30 employees to operate. The standard store requires $8.25 million to build and 15 employees to operate. The expanded-services store requires $12.375 million to build and 45 employees to operate. The corporation can dedicate $82.5 million in construction capital, and 300 employees to staff the stores. On the average, the convenience store nets $1.2 million annually, the standard store nets $2 million annually, and the expanded services store nets $2.6 million annually. How many of each should they build to maximize revenue?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![Excel QM B
2. A corporation plans on building a maximum of 11 new stores in a large city. They will build
these stores in one of three sizes for each location - a convenience store (open 24 hours),
standard store, and an expanded services store. The convenience store requires $4.125
million to build and 30 employees to operate. The standard store requires $8.25 million to
build and 15 employees to operate. The expanded-services store requires $12.375 million
to build and 45 employees to operate. The corporation can dedicate $82.5 million in
construction capital, and 300 employees to staff the stores. On the average, the
convenience store nets $1.2 million annually, the standard store nets $2 million annually,
and the expanded services store nets $2.6 million annually. How many of each should
they build to maximize revenue?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F79319355-ead1-49f1-953d-83c4978f0e6e%2F3a0c647d-826d-4778-a877-e2a8a5baa039%2Fjqekfih_processed.png&w=3840&q=75)
Transcribed Image Text:Excel QM B
2. A corporation plans on building a maximum of 11 new stores in a large city. They will build
these stores in one of three sizes for each location - a convenience store (open 24 hours),
standard store, and an expanded services store. The convenience store requires $4.125
million to build and 30 employees to operate. The standard store requires $8.25 million to
build and 15 employees to operate. The expanded-services store requires $12.375 million
to build and 45 employees to operate. The corporation can dedicate $82.5 million in
construction capital, and 300 employees to staff the stores. On the average, the
convenience store nets $1.2 million annually, the standard store nets $2 million annually,
and the expanded services store nets $2.6 million annually. How many of each should
they build to maximize revenue?
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