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:

$\frac{84000}{1200}=70$

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.