A fast-food chain plans to expand by opening several new restaurants. The chain operates two types of

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A fast-food chain plans to expand by opening several new restaurants. The chain operates two types of restaurants, drive-through and full-service. A drive-through restaurant costs $100,000 to construct, requires 5 employees, and has an expected annual revenue of $200,000. A full-service restaurant costs $150,000 to construct, requires 15 employees, and has an expected annual revenue of $500,000. The chain has $2,400,000 in capital available for expansion. Labor contracts require that they hire no more than 210 employees, and licensing restrictions require that they open no more than 20 new restaurants. How many restaurants of each type should the chain open in order to maximize the expected revenue? What is the maximum expected revenue? How much of their capital will they use and how many employees will they hire?
In Problem construct a mathematical model in the form of a linear programming problem.
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College Mathematics for Business Economics Life Sciences and Social Sciences

ISBN: 978-0321614001

12th edition

Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen

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