Question

A contractor builds two types of homes. The Carolina requires one lot, $160,000 capital, and 160 worker-days of labor, whereas the Savannah requires one lot, $240,000 capital, and 160 worker-days of labor. The contractor owns 300 lots and has $48,000,000 available capital and 43,200 worker-days of labor. The profit on the Carolina is $80,000 and the profit on the Savannah is $90,000. Find how many of each type of home should be built to maximize profit.

Answer 1

the contractor should build 210 Carolina type homes and 60 Savannah type homes

Step-by-step explanation:

you have to maximize the following equation: 80000C + 90000S

Where:

C = Carolina type homes

S = Savannah type homes

the constraints are:

160000C + 240000S ≤ 48000000

160C + 160S ≤ 43,200

C ≥ 0

S ≥ 0

using solver, the optimal solution is 210C + 60S = $22,200,000