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Quanturn Chemical Quantum Chemical is looking to the future and wants to understand the impact of emerging EPA regulations. They produce five chemicals in a common facility and need to understand the impact of new particulate emissions limits. Quantum's sales potentials are expected to remain constant for the next five years. Relevant data for each product are as follows (T denotes tons). Particulate Emissions T/T roduced Sales Forecast Variable er)Cost (S/R Revenues (S/ 0.0100 0.0025 0.0300 0.0400 0.0250 1000 2000 1600 1000 1000 600 700 600 1000 1600 1300 800 1500 2000 17000 The production facility rotates through the product line because it can produce only one product at a time. The production rates differ for the various product due to processing limits. It takes 0.3 hours to make one ton of A, 0,5 hours to produce one ton of B, and one hour each for to make a ton of C, D, and E. The facility can be operated up to 4000 hours per year. The EPA is proposing a "bubble policy" for Quantum's facility. In this form of regulation, imagine that a bubble encloses the manufacturing facility, and only total particulates that escape the bubble are regulated. This sort of policy replaces historical attempts by the EPA to micromanage emissions within a company, and allows Quantum to make any changes it wished, provided the total particulate emissions limits from its facility are kept below certain limits. The current proposal on total particulate emissions are shown in the table below: 4 5 Year Allowable Emission 80 60 40 20 (T/year) unlimited One strategy for satisfying these regulations is to adjust product mix, cutting back on production of some products if necessary, Quantum wishes to explore this strategy before contemplating the addition of new equipment. a) b) c) Determine the maximum profit Quantum can achieve from its product line in the coming year (Year 1). Given the tightening of limits in future years, determine Quantum's maximum profits in each of the remaining years. Consider the emission limit that applies in year 4. Determine how much Quantum should be willing to pay at that time to be allowed emission of one extra ton of particulates above the limit. Per the model constraints, what is the maximum number of tons that particulates could be reduced