The problem below involves three variables. Solve it with the simplex method, Excel, or some other technology. A contractor builds three types of houses: the Aries, the Belfair, and the Wexford. Each house requires one lot, and the following table gives the number of labor-hours and the amount of capital needed for each type of house, as well as the profit on the sale of each house. There are 13 lots, 52,400 labor-hours, and $3,684,200 available for the contractor's use. Aries Belfair Wexford Labor-hours 3,000 3,700 5,000 Capital $205,000 $279,600 $350,000 Profit $20,000 $25,000 $30,000 (a) Building how many of each type of house will maximize his profit? Aries houses Belfair houses Wexford houses (b) What is the maximum possible profit? $
The problem below involves three variables. Solve it with the simplex method, Excel, or some other technology. A contractor builds three types of houses: the Aries, the Belfair, and the Wexford. Each house requires one lot, and the following table gives the number of labor-hours and the amount of capital needed for each type of house, as well as the profit on the sale of each house. There are 13 lots, 52,400 labor-hours, and $3,684,200 available for the contractor's use. Aries Belfair Wexford Labor-hours 3,000 3,700 5,000 Capital $205,000 $279,600 $350,000 Profit $20,000 $25,000 $30,000 (a) Building how many of each type of house will maximize his profit? Aries houses Belfair houses Wexford houses (b) What is the maximum possible profit? $
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Question
The problem below involves three variables. Solve it with the simplex method, Excel, or some other technology.
A contractor builds three types of houses: the Aries, the Belfair, and the Wexford. Each house requires one lot, and the following table gives the number of labor-hours and the amount of capital needed for each type of house, as well as the profit on the sale of each house. There are 13 lots, 52,400 labor-hours, and $3,684,200 available for the contractor's use.
| Aries | Belfair | Wexford | ||||
|---|---|---|---|---|---|---|
| Labor-hours | 3,000 | 3,700 | 5,000 | |||
| Capital | $205,000 | $279,600 | $350,000 | |||
| Profit | $20,000 | $25,000 | $30,000 |
(a) Building how many of each type of house will maximize his profit?
(b) What is the maximum possible profit?
$
| Aries | houses |
| Belfair | houses |
| Wexford | houses |
(b) What is the maximum possible profit?
$
Expert Solution
Step 1: Variables
Let,
A = Units of Aries to be built
B = Units of Belfair to be built
W = Units of Wexford to be built
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