Question: The problem below involves three variables. Solve it with the simplex method, Excel, or some other technology. A contractor builds three types of houses: the
The problem below involves three variables. Solve it with the simplex method, Excel, or some other technology. A contractor builds three types of houses: the Aries, the Belfair, and the Wexford. Each house requires one lot, and the following table gives the number of labor-hours and the amount of capital needed for each type of house, as well as the profit on the sale of each house. There are 14 lots, 56,100 labor-hours, and $3,963,800 available for the contractor's use.
| Aries | Belfair | Wexford | ||||
|---|---|---|---|---|---|---|
| Labor-hours | 3,000 | 3,700 | 5,000 | |||
| Capital | $205,000 | $279,600 | $350,000 | |||
| Profit | $20,000 | $25,000 | $30,000 |
(a) Building how many of each type of house will maximize his profit?
| Aries | houses |
| Belfair | houses |
| Wexford | houses |
(b) What is the maximum possible profit?
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