The Foggy Bottom Development Corporation has jus purchased a small hotel for conver- sion to redominium apartments. The building in a popular area of Washington, DC near the US. State Department will be highly marketable and each endominium sale is a pected to yield a good prodit The version process, however, includes several options. Ha sally, four types of condominiums can be designed out of the former hond roots. They are deluxe ene-bedroom apartments, regular one-bedroom wartments, deluxe studies, and effi- ciency apartments. Each will yield a different profit, but each type also requires a different level of investment in carpeting, painting, appliances, and carpentry work. Bank loans dictate a limited budget that may be allocated to each of these needs. Profit and cost date, and cont of conversion requirements for each apartment we shown in the accompanying ubie. TYPE OF APARTMENT DELUXE REGULAR DELUXE TOTAL RENOVATION ONE-BEDROOM ONE-BEDROOM STUDIO EFFICIENCY BUDGETED REQUIREMENT ($) +5) (5) 500 New carpeting 35.000 1,000 1.100 00 MOMO 18.000 100 11600 1.200 900 45,000 New appliances Carpentry work 2.000 1.000 100 900) 200 19.000 8000 Phot ra khi 5.000 2.500 5.000 Thus, we see that the cost of carpeting a deluxe one-bedroe unnt will be $1.100 the of competing a regular bedroom at SI 000, and seem Antal el is budgeted for all new competing the building Zone regulations dictate that the building contain no more than 30 condominium when the conversion is completed and in less than the development com. Y desde to have blend of owmen me more than De the unit bould be bede Natal key died in each Cened beth on Welcome e pestank len und um exceeded Whited from one that nother such as an Faunaute Levelopear 5 r OP Xq=Number of Deluxe One Bedroom Units A X = Number of Regular One Bedroom Units = A X = Number of Deluxe Studio Units = X = Number of efficiency Units A Maximum Profits A (Format xxxxxx)