Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A fast food chain plans to expand by opening several new restaurants. The chain operates three types of restaurants, drive-through, truck-stop, and full-service. A drive-through

A fast food chain plans to expand by opening several new restaurants. The chain operates three types of restaurants, drive-through, truck-stop, and full-service. A drive-through restaurant costs $100,000 to construct and funish, requires 5 employees, and has an expected annual revenue of $200,000. A truck-stop restaurant costs $20,000 to funish (no construction costs), requires 3 employees, and has an expected annual revenue of $120,000. A full-service restaurant costs $150,000 to construct and funish, requires 18 employees, and has an expected annual revenue of $600,000. The chain has $2,200,000 in capital available for expansion. Labor contracts require that they hire no more than 210 employees, and licensing restrictions require that they open no more than 20 new restaurants. Use integer constraints on the number of restaurants built. What is the maximum expected revenue? You will also complete a sensitivity analysis and make suggestions to the company. (USING EXCEL)

Step by Step Solution

3.50 Rating (153 Votes )

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Mathematics for Business Economics Life Sciences and Social Sciences

Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen

12th edition

321614003, 978-0321614001

More Books

Students also viewed these Finance questions

Question

=+b) What would you recommend doing next to help improve the model?

Answered: 1 week ago

Question

(A) Identify the basic and non basic variables.

Answered: 1 week ago

Question

1. Describe how culture is like an onion.

Answered: 1 week ago