What demand for premium gasoline for the next production

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Reference no: EM1381037

Q. Allstate Oil produces two grades of gasoline: regular also premium. The profit contributions are $0.30 per gallon for regular gasoline, also 0.50 per gallon for premium gasoline.

Each gallon of regular gasoline contains 0.3 gallons of grade A crude oil also each gallon of premium contains 0.6 gallons of grade A crude oil.

For the next production period, Allstate has 18,000 gallons of grade A crude oil available. The refinery used to produce the gasoline has a production capacity of 50,000 gallons for the next production period. Allstate distributors indicated which the demand for the premium gasoline for the next production period would be at most 20,000 gallons

Reference no: EM1381037

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