Question
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)
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