An investor has $500,000 to invest and wants to maximize the money they will receive at the end of one year. They can invest in condos, apartments and houses. The profit after one year, the cost and the number of units available are shown below.
|
Variable
|
Investment
|
Profit
($1,000)
|
Cost
($1,000)
|
Number Available
|
|
X1
|
Condos
|
6
|
50
|
10
|
|
X2
|
Apartments
|
12
|
90
|
5
|
|
X3
|
Houses
|
9
|
100
|
7
|
a) Word-process the linear programming model below.
Variables
X1 = Number of condos purchased
X2 = Number of apartments purchased
X3= Nummber of houses purchased
Objective Function
Constraints
b) Set up the spreadsheet for Excel Solver. Copy and paste the spreadsheet below.
c) Copy and paste the Answer report below.
d) Write the Optimal Solution below. Note: The Optimal Solutions should include the optimal values for the non-zero variables as well as the objective function.