Reference no: EM133101684

A company needs to rent space for its office employees, some of whom are physically challenged and therefore need to work in an accessible environment (no stairs, handrails on the walls, etc.). Space is available in Location 1 at a rate of $414 per square metre (per annum), while at Location 2 space rents for $810 per square metre (per annum). At location 1, only 30% of the space is accessible, while at location 2, 60% of the space is accessible. The company needs a total of at least 600 square metres of space, of which at least 300 square metres must be accessible. No more than 70% of the entire space rented is to be at Location 1, and no more than 80% of the entire space rented is to be at Location 2.

Without plotting any points outside the 750 by 750 region on the graph paper shown below, solve the model, clearly indicating each constraint with a word description next to it, the feasible region, the trial and optimal isovalue lines, and the point of optimality. Compute the exact solution algebraically, and clearly state the recommendation and the OFV.