Final answer:
To maximize profits under the labour time constraint, Roberto, Inc. should produce all 600 units of Product B, utilizing its higher contribution per minute to optimize resource usage and satisfy total demand.
Step-by-step explanation:
To maximize profits for Roberto, Inc., given the labor time constraint of 3,000 minutes, we must calculate the contribution per unit of constrained resource for both products. The contribution margin per minute for Product A is $8 divided by 4 minutes, which equals $2 per minute. For Product B, the contribution margin per minute is $6 divided by 2 minutes, which equals $3 per minute. Since Product B has a higher contribution per minute, we should produce as much of it as possible given the demand and the time constraint.
Demand for Product B is 600 units, which would require 1,200 minutes of labor (600 units x 2 minutes per unit). Since we have 3,000 minutes available and producing the full demand of Product B utilizes only 1,200 minutes, we can produce all 600 units of Product B. This will leave us with 1,800 minutes (3,000 minutes - 1,200 minutes) to produce Product A or any other product that may contribute to the profits under the labor time constraint.