Answered step by step
Verified Expert Solution
Link Copied!

Question

00
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 furnish, 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. Ca 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. DO this in excel please and show the formulas and numbers. How many restaurants? I know the constraint is x1+x2+x3<=20 but what are the numbers? part 2 How many Drive-throughs should be opened? (include 2 decimal points) How many Truck-stops should be opened? (include 2 decimal points) How many Full-service should be opened? (include 2 decimal points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

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

Get Started