we must indicate that the sum between tha parts and labor must be less or equal than to 40
so
[tex]P+L\le40[/tex]where P is the value of Parts and L the value of Labor
we can replace P and solve L
[tex]\begin{gathered} 17.50+L\le40 \\ L\le40-17.50 \\ L\le22.50 \end{gathered}[/tex]this tells us that the value of the labor must be less or equal than $22.50
the inequality is
[tex]L\le22.50[/tex]