[See Solution] Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the
Question: Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Evans family has drawn up some information to make preliminary plans for construction. The hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. In order to decide how many of each of the four kinds of rooms to plan for, the Evans family will consider the following information
- The average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.
- The construction cost estimate for a lagoon view room is $12,000 and for a beachfront room if $15,000. Air purifying systems and additional smoke detectors and sprinklers add $3,000 to the cost of any smoking room. Evans Enterprises has raised $6.3 million to pay for the construction.
- There will be at least 100 beachfront rooms.
- Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms.
- Industry trends recommend that the number of smoking rooms be no more than 50% of the number of-non--smoking rooms.
Develop the linear programming model to maximize revenue.
Deliverable: Word Document 