Question

How many two-bedroom apartments should be built to maximize revenue

Answer 1

In this case for the maximum number of one-bedroom apartment, we have:

`96000-(15\cdot800)=84000`

84000 square feet for two-bedrooms apartments, so:

`(84000)/(1200)=70`

70 two-bedrooms apartment, and in this case the revenue is:

`15\cdot650+70\cdot900=72750`

And the revenue becomes smaller for fewer one-bedrooms apartments, so in this case tto maximize the revenue 70 two-bedrooms apartments should be built.