This problem is giving me a headache. I don't even know where to start.

I just need to model this problem (not solve it) in the form:

a) actions / variables

b) function to maximize

c) constraints

It says in binary numbers, but if you don't know how forget about it.

http://i54.tinypic.com/2aa13cp.jpg

They use this method in my book:

http://i51.tinypic.com/wi7g9.gif