Reference no: EM13878851

A new energy business is considering selling and installing three types of alternative energy systems for residential homes in addition to its conventional system (conv). The first is a thermal solar (solar1) hot water system that provides both hot water and heat to the home. The second is a solar system (solar2) that provides electricity to the home. The third is a geothermal (geo) heating and cooling system. The business has 10 installers and faces the following parameters for the year:

	conv	solar1	solar2	geo	Endowment
Profit/unit	$2,000	$1,500	$2,500	$1,000
Labor (weeks)	0.5	1.0	1.5	0.75	520

The firm has four goals:

Goal 1: Make at least $1,500,000 per year from the sale of these four systems Goal 2: Sell at least 160solar1 systems each year

Goal 3: Sell at least 160solar2 systems each year

Goal 4: Sell at least 160geo systems each year

Formulate and solve the profit maximizing solution to this exercise ignoring the four goals.