Problema Solution

House A costs $20,000 and has a profit of $25,000 and house B costs $40,000 and has a profit of $60,000. There is a total of $2,600,000 to cover these costs. How much of each type of house should someone build if he wants to maximize his profit?

Answer provided by our tutors

maximise,

P = 25A+60B

Subject to,

20A+40B < 2600

Or, A+2B < 130

Since, profit in B is highest, we canbuild all B houses.

So, B = 65

A = 0