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Determine the number of liters of regular gasoline

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The Company produces two grades of gasoline: regular and premium. The profit contributions are P3.00 per liter for regular gasoline and P6.00 per liter for premium gasoline. Each liter of regular gasoline contains 0.3 liter of grade A crude oil and each liter of premium gasoline contains 0.6 liter of grade A crude oil. For the next production period, Cavite West has 18,000 liters of Grade A crude oil available. The refinery used to produce the gasoline has a production capacity of 50,000 liters for the next production period. Cavite West's distributors have indicated that demand for the premium gasoline for the next production period will be at most 20,000 liters. Determine the number of liters of regular gasoline and the number of liters of premium gasoline that should be produced in order to maximize total profit contribution. Use the graphical method to solve this problem

 

 

Reference no: EM132942157

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