Problem: Lauren Moore has sold her business for $500,000 and wants to invest in condominium units (which she intends to rent) and land (which she will lease to farmer). she estimates that she will receive an annual return of $8000 for each condominium and $6000 for each acre of land. a condominium unit costs $70,000 and land costs $30,000 per acre. a condominium will cost her $1000 per unit and acre of land will cost $2000 for maintenance and upkeep and $14000 has been budgeted for these annual expense. Lauren wants to know how much to invest in condominiums and land to maximize her annual return.
a) Formulate a mixed integer programming model for this problem.
b) Solve this unit model by using the computer.