Reference no: EM133032298
Question - Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.
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Crude Oil Cost
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Ingredient A
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Ingredient B
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1
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$0.20
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10%
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50%
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2
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$0.25
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40%
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20%
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Each gallon of regular gasoline must contain at least 30% of ingredient A, whereas each gallon of high octane can contain at most 40% of ingredient B. Daily demand for regular and high-octane gasoline is 900,000 and 500,000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost?
a. gallons of crude 1 used to produce regular= 300,000
b. gallons of crude 1 used to produce high-octane=333,333
c. gallons of crude 2 used to produce regular=600,000
d. gallons of crude 2 used to produce high-octane=166,667