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