Problem 1 (20 Points): An airline owns an aging fleet of Boeing 737 jet airplanes. It is considering a major purchase of up to 17 new Boeing 757 and 767 jets. The decision must take into account of numerous cost and capabilities factors, including the following:

the airline can finance up to $16 billion in purchase;

each Boeing 757 will cost $80 million and 767 will cost $110 million;

at least one-third of planes purchased should be the longer-range 757;

the annual maintenance cost per 757 is estimated to be $800,000 and it is $500,000 for each 767;

757 can carry 125000 passengers per year, where as each 767 can fly 81000 passengers annually.

Formulate this as an integer programming problem to maximize the annualpassengers-carrying capability.

COMPUTE IN EXCEL SOLVER