A refinery produces two grades of gasoline, regular and premium, by blending together three components: A, B,

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A refinery produces two grades of gasoline, regular and premium, by blending together three components: A, B, and C. Component A has an octane rating of 90 and costs $28 a barrel, component B has an octane rating of 100 and costs $30 a barrel, and component C has an octane rating of 110 and costs $34 a barrel. The octane rating for regular must be at least 95 and the octane rating for premium must be at least 105. Regular gasoline sells for $38 a barrel and premium sells for $46 a barrel. The company has 40,000 barrels of component A, 25,000 barrels of component B, and 15,000 barrels of component C. It must produce at least 30,000 barrels of regular and 25,000 barrels of premium. How should the components be blended in order to maximize profit?

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College Mathematics For Business Economics, Life Sciences, And Social Sciences

ISBN: 978-0134674148

14th Edition

Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker

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