Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $21 and must have an octane rating of at least 90. Each barrel of supreme sells for $25 and must have an octane rating of at least 97. Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs:
Input______Cost/barrel__Oct rating__Barrels avbl (in 1000s)
1_________$17.25__100__150
2_________$15.75__87__350
3_________$17.75__110__300
Riverside has orders for 300,000 barrels of regular and 450,000 barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline if they want to maximize profits?
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