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Chandler Chandler Oil has 5,000 barrels of crude oil one and 10,000 barrels of crude oil two available. Chandler sells gasoline and heating oil. These

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Chandler Chandler Oil has 5,000 barrels of crude oil one and 10,000 barrels of crude oil two available. Chandler sells gasoline and heating oil. These products are produced by blending together the two crude oils. Each barrel of crude one has a "quality level" of ten and each barrel of crude two has a quality level of five. Gasoline must have an average quality level of at least eight, whereas heating oil must have an average quality level of at least six. Gasoline sells for $25 per barrel and heating oil sells for $20 per barrel. The advertising cost to sell one barrel of gasoline is $0.20 and the advertising cost to sell one barrel of heating oil is $0.10. We assume that demand for heating oil and gasoline is unlimited, so that all of Chandler's production can be sold. Chandler wants to maximize its profit. Owner

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