The StraitOutta Compton Mall seeks to allocate its 10,000 square meters (sq.m) of floor space on...

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The "StraitOutta Compton Mall" seeks to allocate its 10,000 square meters (sq.m) of floor space on the basis of estimated annual net revenue per square meter. Estimated annual net revenue per sq.m is 20 baht for clothing, 30 baht for restaurants and 16 baht for housewares and these relationships are linear within the ranges considered here. Cooperative advertising contracts require that at least 1,000 sq.m are allocated to clothing stores, but the Mall's lease limits its clothing stores to a maximum of 4,000 sq.m. The Mall's image as more than a simple restaurant area requires that restaurants be limited to a maximum of 7,000 sq.m, and that clothing and restaurants be limited to a combined total of 9,000 sq.m. Chief Rental Officer (CRO) Mr. S. Shady wants you to explain to him how the space should be allocated for maximum annual net revenue ? The "StraitOutta Compton Mall" seeks to allocate its 10,000 square meters (sq.m) of floor space on the basis of estimated annual net revenue per square meter. Estimated annual net revenue per sq.m is 20 baht for clothing, 30 baht for restaurants and 16 baht for housewares and these relationships are linear within the ranges considered here. Cooperative advertising contracts require that at least 1,000 sq.m are allocated to clothing stores, but the Mall's lease limits its clothing stores to a maximum of 4,000 sq.m. The Mall's image as more than a simple restaurant area requires that restaurants be limited to a maximum of 7,000 sq.m, and that clothing and restaurants be limited to a combined total of 9,000 sq.m. Chief Rental Officer (CRO) Mr. S. Shady wants you to explain to him how the space should be allocated for maximum annual net revenue ?

Answer rating: 100% (QA)

Cooperative advertising contracts require at least 1000 sqm to be allocated to clothing stores x 100... View the full answer