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. I'm having difficulty calculating the octane rating see question B, C and D. Profit is 5,012,500.
Q. 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 Per Barrel Octane Rating Barrels Available (in 1000s)
1 $17.25100150
2 $15.7587350
3 $17.75110300
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 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 profit-maximizing solutions identified in parts b and c would you recommend the company implement? Why?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!