Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Qno. 2 Ineos chemical company produces a specific chemical which emits sulfur dioxide and particulate matter in the atmosphere. They introduced a new expensive process

image text in transcribed
Qno. 2 Ineos chemical company produces a specific chemical which emits sulfur dioxide and particulate matter in the atmosphere. They introduced a new expensive process to supplement an older process because of new federal regulations on pollution. The older process emitted 20grams of sulfur dioxide and 40 grams of particulate matter into the atmosphere for each gallon of chemical produced. The new process emits 5grams of sulfur dioxide and 20 grams of particulate matter for each gallon produced. The company makes a profit of 60 cents per gallon and 20 cents per gallon on the old and new processes, respectively. a) If the government allows the plant to emit no more than 16,000 grams of sulfur dioxide and 30,000 grams of particulate matter daily, how many gallons of the chemical should be produced by each process to maximize daily profit? What is maximum daily profit? b) Discuss the effect on the production schedule and the maximum profit if the government decides to restrict emissions of sulfur dioxide to 11,500 grams daily and all other data remain unchanged. c) Discuss the effect on the production schedule and the maximum profit if the government decides to restrict emissions of sulfur dioxide to 7,200 grams daily and all other data remain unchanged

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Decision Making In Marketing And Finance An Interdisciplinary Approach To Solving Complex Organizational Problems

Authors: P. Koku

1st Edition

1137379472, 1137444770, 9781137379474, 9781137444776

More Books

Students also viewed these Finance questions

Question

6. Why would consumers knowingly buy counterfeit luxury brands?

Answered: 1 week ago