Question
The Amorco Oil Company controls two oil fields. Field 1 can produce up to 22 million barrels of oil per day, and field 2 can
The Amorco Oil Company controls two oil fields. Field 1 can produce up to 22 million barrels of oil per day, and field 2 can produce up to 19 million barrels of oil per day. At field 1, it costs $42.50 to extract and refine a barrel of oil; at field 2 the cost is $38.20. Amorco sells oil to two countries: United Kingdom and Japan. The shipping costs per barrel are shown in the file P05_48.xlsx. Each day, the United Kingdom is willing to buy up to 14 million barrels at $65.80 per barrel, and Japan is willing to buy up to 23 million barrels at $68.40 per barrel. Determine how to maximize Amorco's profit. If your answer is zero, enter "0".
1 Amorco data 3 Cost per barrel of shipping 4 5 Field 1 $4.80 $5.30 6 Field 2 $5.70 $6.90 U.K. Japan 10 Shipments (in millions of barrels) U.K. Japan Field 1 Field 2 Amorco's Profit: (If needed, round your answer to a whole dollar amount.)
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