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Problem A construction company is planning their projects for the year 2021. The company is considering the construction of a certain number of 1,000 m

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Problem A construction company is planning their projects for the year 2021. The company is considering the construction of a certain number of 1,000 m buildings. In 2018, the company has built 5 similar buildings but with smaller areas, and the material costs associated with those 5 buildings are as shown in the following table: Area (m) Cost (JD) 1 83,200 2 747 87,800 90,400 93,100 5 845 95,500 Building # 700 3 780 4 810 Year The material cost index values are displayed in the following table: Cost index 2017 345 2018 355 2019 2020 360 2021 362 357 The company started to build 1,000 m buildings in 2019, and the project management team observed that 21,760 labor hours were needed to construct the first 1,000 m building; however, the number of labor hours per building decreased thereafter at a 93% learning slope. Use the 4th building as the basis for estimating the average labor hours per building and assume the 2021 average labor wage is JD 3.75 per hour. The company's fixed cost is JD 350,000 per year and the demand on the buildings (D) is governed by the following relationship: p = 228,000 - 1,400 D, where p is the selling price per building. (a) What is the range of profitable demand? (b) How many buildings should the company construct in 2021 in order to maximize its profit? (e) Based on the demand identified in part (b), what is the breakeven selling price per building? (d) How much profit will the company make in 2021 using the demand identified in part (b)

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