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You own a car dealership and are trying to decide how to configure the showroom floor....

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Finance

You own a car dealership and are trying to decide how toconfigure the showroom floor. The floor has 2000 square feet ofusable space. You have hired an analyst and asked her to estimatethe NPV of putting a particular model on the floor and how muchspace each model​ requires:

Model

NPV

Space Requirement​ (sq. ft.)

MB345

$ 2 comma 500$2,500

200

MC237

$ 5 comma 000$5,000

250

MY456

$ 4 comma 000$4,000

240

MG231

$ 1 comma 500$1,500

150

MT347

$ 9 comma 000$9,000

450

MF302

$ 3 comma 600$3,600

200

MG201

$ 2 comma 000$2,000

150

In​ addition, the showroom also requires office space. Theanalyst has estimated that office space generates a NPV of

$ 14 per square foot. What models should be displayed on thefloor and how many square feet should be devoted to office​space?

Model

NPV

Space Requirement (sq. ft.)

PI

MB345

$2,500

200

$

MC237

$5,000

250

$

MY456

$4,000

240

$

MG231

$1,500

150

$

MT347

$9,000

450

$

MF302

$3,600

200

$

MG201

$2,000

150

$

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