Preliminary plans are under way for the construction of a new stadium for a

# Preliminary plans are under way for the construction

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Preliminary plans are under way for the construction of a new stadium for a major league baseball team. Cityofficials have questioned the number and profitability of the luxury corporate boxes planned for the upper deckof the stadium. Corporations and selected individuals may buy the boxes for \$300,000 each. The fixedconstruction cost for the upper-deck area is estimated to be \$4,500,000, with a variable cost of \$150,000 foreach box constructed.a.What is the breakeven point for the number of luxury boxes in the new stadium? b.Preliminary drawings for the stadium show that space is available for the construction of up to 50 luxuryboxes. Promoters indicate that buyers are available and that all 50 could be sold if constructed. What isyour recommendation concerning the construction of luxury boxes? What profit is anticipated? 16Financial Analysts, Inc., is an investment firm that manages stock portfolios for a number of clients. A new clientis requesting that the firm handle an \$800,000 portfolio. As an initial investment strategy, the client would like torestrict the portfolio to a mix of the following two stocks:Letx = number of shares of Oil Alaskay = number of shares of Southwest Petroleuma.Develop the objective function, assuming that the client desires to maximize the total annual return.Let R = total annual returnObjective function:Maximize R = 6x + 4yb.Show the mathematical expression for each of the following three constraints:(1)Total investment funds available are \$800,000. Tri N Anthony Situmorang
Tri N Anthony Situmorang