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2 . 5 Oil Blending: An oil company produces three brands of oil: regular, multigrade, and supreme. Each brand of oil is composed of one

2.5 Oil Blending: An oil company produces three brands of oil: regular, multigrade, and supreme. Each brand of oil is composed of one or more of four crude stocks, each having a different lubrication index. The relevant data concerning the crude stocks are as follows.
Crude Stock Lubrication Index Cost ($/Barrel)
1207.12408.53307.74559
Daily Supply (Barrels)
1000110012001100
Each brand of oil must meet a minimum standard for a lubrication index, and each brand thus sells at a different price. The relevant data concerning the three brands of oil are as follows.
Brand
Regular Multigrade Supreme
Minimum Lubrication Index
253550
Selling Price ($/Barrel)
8.5910
Daily Demand (Barrels)
20001500750

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