Create an excel workbook for the followingquestions. Answer these questions under your Solver work for eachrespective problem.
1. Devos Inc. is building a hotel. It will have 4 kinds ofrooms: suites where customers can smoke, suites that arenon-smoking, budget rooms where the customers can smoke, and budgetrooms that are non-smoking. When we build the hotel, we need toplan for how many rooms of each type we should have. The followingare requirements for the hotel:
- We want to figure out how many rooms of each type to buildbased on maximizing revenue if we fill up the hotel. We expect tocharge $190 for a suite that is non-smoking and $140 for a budgetroom that is non-smoking. Smoking room customers for both suitesand budget rooms will have to pay an additional $20 per night.
- We can spend up to $7,500,000 on construction of our hotel. Thecost to build a non-smoking budget room is $12,000. The cost tobuild a non-smoking suite is $15,000. It is $3,000 additional for asmoking room of either type for smoke detectors andsprinklers.
- We require that the number of budget rooms be at least 1.5times the number of suites, but no more than 3 the number ofsuites.
- There needs to be at least 80 suites, but no more than200.
- Industry trends recommend that smoking rooms should be lessthan 50% of the non-smoking room and in addition, we require ourbuilder gives us at least 4 smoking rooms.
Answer the following using your Solveranswers:
- How many of each room type should be built, and what would therevenue be for a night when our hotel was fully booked?
- Without re-running Solver, what happens to our revenue if weget an additional $1,500,000 for building? Explain in words how yougot this answer without re-running solver. Over what amount ofconstruction costs can you use this procedure?
- Over what range of room price can our budget non-smoking roomsvary over for us to get the same answer for the quantity of eachtype of room?
