Jack MacLean has entered into a real estate development partnership with Bill Lyons and June Reese. Bill owns one-fifth of the partnership, while June has a one-fourth 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 212 acres. Homes in the area have been selling for $250,000. By time of completion, Jack estimates the price of each home will increase by 15 of the current value. The partners sent a survey to 21,000 potential customers to see whether they should heat the homes with oil or gas. One-fifth 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 $3 per gallon. The partnership estimates its profit per home will be 110 the selling price of each home. Required:
a. Calculate the number of homes to be built.
b. Calculate the selling price of each home.
c. Calculate the number of people responding to survey.
d. Calculate the number of people desiring oil.
e. Calculate the average monthly cost per house to heat using oil. (Round your answer to 2 decimal places.)
f. Calculate the amount of profit Jack will receive from the sale of homes.