TicToc produces product A and product B. These products have the following resource requirements. The firm has a weekly production budget of $3000 and a maximum of 1000 hours of labor per week. Each A produced generates $35.00 in profit for the company. Each B produced generates $25.00 in profit for the company. The constraint for the budget is represented by

Question

TicToc produces product A and product B. These products have the following resource requirements.  The firm has a weekly production budget of $3000 and a maximum of 1000 hours of labor per week. Each A produced generates $35.00 in profit for the company. Each B produced generates $25.00 in profit for the company. The constraint for the budget is represented by

Quizplus · Accepted Answer

The budget constraint is represented by the equation $12A + $8B < $3,000. This is because each unit of product A requires 12 labor hours and each unit of product B requires 8 labor hours, and the total available labor hours per week is 1000. Therefore, the total amount spent on labor can be represented by the inequality 12A + 8B < 1000, which can then be multiplied by the hourly labor cost of $25 to get the budget constraint of $12A + $8B < $3,000.

TicToc Produces Product a and Product B