Mr. Cog has 18 hours per day to divide between labor and leisure. His utility function is U(C,R) = CR; where C is dollars per year spent on consumption and R is hours of leisure. If he has 19 dollars of nonlabor income per day and gets a wage rate of 15 dollars per hour when he works, his budget equation, expressing combinations of consumption and leisure that he can afford to have, can be written as: