RakhiE637980 RakhiE637980
  • 28-10-2022
  • Mathematics
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How many two-bedroom apartments should be built to maximize revenue

How many twobedroom apartments should be built to maximize revenue class=

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ArdynZ670981 ArdynZ670981
  • 28-10-2022

In this case for the maximum number of one-bedroom apartment, we have:

[tex]96000-(15\cdot800)=84000[/tex]

84000 square feet for two-bedrooms apartments, so:

[tex]\frac{84000}{1200}=70[/tex]

70 two-bedrooms apartment, and in this case the revenue is:

[tex]15\cdot650+70\cdot900=72750[/tex]

And the revenue becomes smaller for fewer one-bedrooms apartments, so in this case tto maximize the revenue 70 two-bedrooms apartments should be built.

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