In this example, assume

c$0=5,$ c$1=0\mathrm{.}25,$ and c$2=0\mathrm{.}75.$

Assume each unit of labor costs $$25$ and each unit of capital costs $$75.$ With $$85,000$ available in the budget, develop an optimization model for determining how the budgeted amount should be allocated between capital and labor in order to maximize output.

Max

Correct: Your answer is correct.

s$.$t$.$

Correct: Your answer is correct.

$<=85,000$

L$,$ C $>=0$

$($b$)$

Find the optimal solution to the model you formulated in part $($a$).$ What is the optimal solution value $($in units$)?($Hint: When using Excel Solver, use the bounds

$0<=$ L $<=3,000$

and

$0<=$ C $<=1,000.$

Round your answers to the nearest integer when necessary.$)$