Innis Construction Company specializes in building moderately priced homes in Cincinnati, Ohio. Tom Innis has identified eight potential locations to construct new single-family dwellings, but he cannot put up homes on all of the sites because he has only $300,000 to invest in all projects. The accompanying table shows the cost of constructing homes in each area and the expected profit to be made from the sale of each home. Note that the home-building costs differ considerably due to lot costs, site preparation, and differences in the models to be built.

Note also that a fraction of a home cannot be built.

(a) Formulate Innis's problem using 0-1 integer programming.
(b) Solve with QM for Windows orExcel.

COST OF BUILDING AT THIS SITE (S) EXPECTED PROFIT LOCATION Clifton Mt. Auburn Mt. Adams Amberly Norwood Covington Roselawn Eden Park 60,000 50,000 82.000 03,000 50,000 41,000 80,000 69,000 5,000 6,000 10,000 12,000 8,000 3,000 9,000 10,000