Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel
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
a) 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.
b) 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.
c) There will be at least 100 beachfront rooms.
d) Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms.
e) 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
