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The cost of erecting an office building #1,000,000 for the first story, $1,100.000 for the second story, $1,200,000 for the third story, and so on.
The cost of erecting an office building #1,000,000 for the first story, $1,100.000 for the second story, $1,200,000 for the third story, and so on. Other expenses (lot, basement, etc.) are $5,000,000. Assume net annual income $200,000 per story. How many stories will provide the greatest annual profit? Ignore tax issues. Net annual income includes operating cost and overhead. (Hint: Notice that the increase in construction cost per story is an integer; start try using Excel.)
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