Each type should domar build in order to maximize profit

Assignment Help Business Economics

Reference no: EM13995895

Domar properties plc have a site covering 20,000 meters square on which they wanted to build a mixed estate of 2- & 4-bedroom houses. The 2-bedroom houses will each occupy a plot of 60 meters square and will be sold at a profit of $15,000. On average each will have two people owning 1.2 cars. The 4-bedroom houses will each occupy a plot of 300 meters square and will be sold at a profit of $50,000. On average each will have 5 people owning between them 1.5 cars. They anticipate that roads, verges, play areas and other communal facilities will occupy 40% of the total site. Water and sewage considerations mean that the total number of residents on the estate should not exceed 250. The local authority has told Domar that the road entrance is unsuitable for more than 120 cars to be based on the estate. How many houses of each type should Domar build in order to maximize their profit and how much profit should they expect if they did so?

Reference no: EM13995895

Questions Cloud

The sources automatic data processing : Rate, from best to worst, each of the sources ADP (Automatic Data Processing, Inc.) indicated in the SWOT analysis in terms of its probable reliability. Discuss the steps and/or actions you can take to validate the reliability and accuracy of the inf..

Risks and benefits of expanding the disney brand in new ways : What does Disney do best to connect with its core customers? What are the risks and benefits of expanding the Disney brand in new ways?

The interest earned versus the duration of the investment : Each year,$7,500 is invested at 4% annual compound interest a) What is the value of the investment portfolio after 20 years? After 25 years? After 30 years? b) Repeat part (a) with the investment at 5% annual compound interest c) Based answers to (a)..

The cost of these ingredients per bag of concrete produced : Stroika Concrete makes bags of easy use concrete for the DIY market. The company mixes their concrete using two ingredients, "Great Grit" and "A1 Aggregate". What is the least cost combination of the ingredients that will satisfy the minimum requirem..

Each type should domar build in order to maximize profit : Domar properties plc have a site covering 20,000 meters square on which they wanted to build a mixed estate of 2- & 4-bedroom houses. The 2-bedroom houses will each occupy a plot of 60 meters square and will be sold at a profit of $15,000. On average..

What is the relevance of the marginal rule : ?Assume you are an analyst with an online university say UOP. The Admissions Director (AD) wants to determine the optimum number of students for each ECO561 class. You are provided with the following data: Tuition is $1250 per student. what is the ne..

Describes the concept of utility and economic behavior : Which of the following best describes the concept of utility and economic behavior?

What elements of the national business environment : Imagine that you and a group of your fellow classmates own a company that manufactures cheap sunglasses. To lower production costs, you want to move your factory from your developed country to a more cost-effective nation. Choose a prospective countr..

Suppose the federal government has no national debt : Suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. What amount of government bonds will the U.S. Treasury issue to finance the deficit? Suppose the media report that the federal defic..

User Account

All Pages