Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 4-15 (Algorithmic) Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of
Problem 4-15 (Algorithmic) 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. Crude Oil 1 2 Cost $0.15 $0.20 Ingredient A 40% 70% Ingredient B 40% 10% Each gallon of regular gasoline must contain at least 60% of ingredient A, whereas each gallon of high octane can contain at most 30% of ingredient B. Daily demand for regular and high-octane gasoline is 900000 and 700000 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? Round your answers to the nearest whole number. Round the answers for cost to the nearest dollar. gallons of crude 1 used to produce regular = gallons of crude 1 used to produce high-octane = gallons of crude 2 used to produce regular = gallons of crude 2 used to produce high-octane Cost= $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started