Problema Solution

a builder has 60 lots on which she can build one house per lot. she builds two types of houses, a colonial and a ranch. sales experience has told her she needs to build at least three times more ranchers than colonials. if she makes a profit of $5000 per colonial and $4500 for each rancher,how many of each should she build to maximize profit?

Answer provided by our tutors

let


c = the number of colonial houses, c>=0

r = the number of ranch houses, r>=0


a builder has 60 lots on which she can build one house per lot thus the total number of houses built must be not more then 60


c + r <= 60


she needs to build at least three times more ranchers than colonials


r >= 3c


she makes a profit of $5000 per colonial and $4500 for each rancher thus the total profit is the objective function


F(c, r) = 5000c + 4500r


lets graph the system of inequalities (the constrains)


c >=0

r >= 0

c + r <= 60

r >= 3c


click here to see the graph


Click to see all the steps



the corner points are: (0, 0), (0, 60) and (15, 45)


F(0, 0) = 0


F(0, 60) = 4500*60 = $270,000.00


F(15, 45) = 15*5000 + 45*4500 = $277,500.00 is the maximum of the objective function


the maximum is achieved by building 15 colonial and 45 ranch houses.