Please help with part C only as everything else is correct -

Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows:

		Rental Class
		Super Saver	Deluxe	Business
Room	Type I (Mountain View)	$30	$35	-
	Type II (Street View)	$15	$25	$35

Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 130 rentals in the Super Saver class, 65 in the Deluxe class, and 45 in the Business class. Since these are the forecasted demands, Round Tree will take no more than these amounts of each reservation for each rental class. Round Tree has a limited number of each type of room. There are 90 Type I rooms and 130 Type II rooms.

(a)

Formulate and solve a linear program to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. If an amount is zero, enter 0.

Rental Class with room type	No. of Reservations
Super Saver rentals allocated to room type I	90
Super Saver rentals allocated to room type II	20
Deluxe rentals allocated to room type I	0
Deluxe rentals allocated to room type II	65
Business rentals allocated to room type II	45

(b)

For the solution in part (a), how many reservations can be accommodated in each rental class?

Rental Class	No. of Reservations
Super Saver	110
Deluxe	65
Business	45

Demand for Super Saver rental class was not satisfied.

(c)

With a little work, an unused office area could be converted to a rental room. If the conversion cost is the same for both types of rooms, would you recommend converting the office to a Type I or a Type II room?

	Type I	Type II
Shadow Price	$ 30	$ 15

Convert an unused office area to Type I room.

Explain.

Converting the unused office area to this type of room increases profit by $ _____________.