Challenge Problem 2-64 (Static) [LU \( \mathbf{2 - 1}(\mathbf{1}, \mathbf{2}, \mathbf{3}) \), LU \( \mathbf{2 - 2}(1,2,3,4) \mathbf{L U} \mathbf{2 - 3}(\mathbf{1}, \mathbf{2})] \) Jack Maclean has entered into a real estate development partnership with Bill Lyons and June Reese. Bill owns \( \frac{1}{4} \) of the partnership. while June has a \( \frac{1}{5} \) interest. The partners will divide all profits on the basis of their fractional ownership. The partnership bought 900 acres of land and plans to subdivide each lot into \( 2 \frac{1}{4} \) acres. Homes in the area have been selling for \( \$ 240,000 \). By time of completion, Jack estimates the price of each home will increase by \( \frac{1}{3} \) of the current value. The partners sent a survey to 12,000 potential customers to see whether they should heat the homes with oil or gas. One fourth of the customers responded by indicating a 5 -to-1 preference for oil. From the results of the survey, Jack now plans to install a 270 -gallon oil tank at each home. He estimates that each home will need five fills per year. The current price of home heating fuel is \( \$ 1 \) per gallon. The partnership estimates its profit per home will be \( \frac{1}{8} \) the selling price of each home. Note: Do not round intermediate calculations. Referenoes Calculate the number of homes to be built. a. Number of homes
Solución de tutoría real
Responder
Solución
Revisado y aprobado por el equipo de tutoría de UpStudy
Explicar 
Simplifique esta solución Bonus Knowledge
To find the number of homes that can be built from the 900 acres of land, we first need to convert the area of each lot from a mixed number to an improper fraction. Each lot is \( 2 \frac{1}{4} \) acres, which can be expressed as \( \frac{9}{4} \) acres. To calculate the total number of lots (or homes) that can be created, we divide the total land area by the size of each lot: \[ \text{Number of homes} = \frac{900 \text{ acres}}{\frac{9}{4} \text{ acres/home}} = 900 \times \frac{4}{9} = 400 \text{ homes}. \] So, the partnership plans to build 400 homes on the purchased land. Next, let’s calculate the total selling price for these homes after the estimated increase. Each home will sell for \( \$240,000 + \frac{1}{3} \times \$240,000 = \$240,000 + \$80,000 = \$320,000 \). Assuming the profit per home is \( \frac{1}{8} \) of the selling price, that makes: \[ \text{Profit per home} = \frac{1}{8} \times 320,000 = 40,000. \] Now, with this calculation, they're maximizing their investment by determining the number of homes they can build effectively while strategizing on the heating systems based on customer preference. What a fantastic venture in real estate!
