Question: Please solve in Excel with Solver. I ' m having difficulty calculating the octane rating see question B , C and D . Profit is
Please solve in Excel with Solver. Im having difficulty calculating the octane rating see question B C and D Profit is
Q Riverside Oil Company in eastern Kentucky produces regular and supreme gasoline. Each barrel of regular sells for $ and must have an octane rating of at least Each barrel of supreme sells for $ and must have an octane rating of at least Each of these types of gasoline are manufactured by mixing different quantities of the following three inputs:
Input Cost Per Barrel Octane Rating Barrels Available in s
$
$
$
Riverside has orders for barrels of regular and barrels of supreme. How should the company allocate the available inputs to the production of regular and supreme gasoline to maximize profits?
a Create a spreadsheet model for this problem and solve it using Solver.
b What is the highest possible octane rating for regular gasoline, assuming the company wants to maximize its profits? What is the octane rating for supreme gasoline at this solution?
c What is the highest possible octane rating for supreme gasoline, assuming the company wants to maximize its profits? What is the octane rating for regular gasoline at this solution?
d Which of the two profitmaximizing solutions identified in parts b and c would you recommend the company implement? Why?
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