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Case study-prestige developers

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Reference no: EM133088551

Prestige Developers, Bangalore has acquired a 45-acre site outside Chennai. Zoning restrictions allow at most 9 units per acre. Prestige Developers is planning three types of plots: Small, Medium and Large plots. Average cost of development for each type of plot is Rs300,000, Rs500,000 and Rs750,000.

From experience, PD believes the units will generate a profit of 10% of the construction cost. PD has funding of 175,000,000 for the project. From the experience PD believes the following are the minimum proportions of the total plots: 25% Small plots, 25% Medium plots and 20% Large plots.

Determine how many of each type of plots PD should build to maximize profit.

Reference no: EM133088551

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