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A bank has two types of branches. A satellite branch employs 3 people, requires $400,000 to construct and open, and generates an average daily revenue
A bank has two types of branches. A satellite branch employs 3 people, requires $400,000 to construct and open, and generates an average daily revenue of $10,000. A full-service branch employs 6 people, requires $560,000 to construct and open, and generates an average daily revenue of $18,000. The bank has up to $11.92 million available to open new branches and has decided to limit the new branches to a maximum of 25 and to hire at most 120 new employees. (a) How many branches of each type should the bank open to maximize the average daily revenue? Find the maximum average daily revenue. satellite branches full-service branches maximum revenue $ (b) At the optimal solution from part (a), analyze the bank's constraints (number of new branches, number of new employees, and budget) to determine the "Amount Available," "Amount Used," and "Amount Not Used (Slack)." branches possible used not used employees possible used not used budget possible million used million not used $ million " (c) Obtaining additional quantities of which constraint items would have the potential to increase the bank's average daily revenue? Explain. Additional new employees alone would increase revenue as only this constraint met optimal value. Additional branches and budget would increase revenue as those two constraint were completely used in optimal condition. Additional branches alone would increase revenue as only this constraint met optimal value. Additional budget alone would increase revenue as only this constraint met optimal value. Additional branches and new employees would increase revenue as those two constraint were completely used in optimal condition. Additional budget and new employees would increase revenue as those two constraint were completely used in optimal condition
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