You are a manager for Herman Miller, a major manufacturer of office furni-ture. You recently hired an economist to work with engineering and operations experts to estimate the production function for a particular line of office chairs.

The report from these experts indicates that the relevant production function is

Q = 2K^1/2 L^1/2

where K represents capital equipment and Lis labor. Your company has already

spent a total of $8,000 on the 9 units of capital equipment it owns. Due to cur-rent economic conditions, the company does not have the flexibility needed to acquire additional equipment. If workers at the firm are paid a competitive

wage of $120 per day and chairs can be sold for $400 each, what is your profit-maximizing level of output and labor usage? What is your maximum profit?