Question: [USING EXCEL SOLVER] [PLEASE EXPLAIN THE THOUGHT PROCESS THANK YOU] An oil company transforms crude oil in 2 types of byproducts: A and B. It
[USING EXCEL SOLVER] [PLEASE EXPLAIN THE THOUGHT PROCESS THANK YOU]
An oil company transforms crude oil in 2 types of byproducts: A and B.
It costs $65,000 to buy 1000 barrels of crude oil, 500 of it will be transformed in A and 500 in type B.
Both A and B can be sold directly to the consumer or go through a process:
If they are sold directly, A is sold by $80,000 per 1000 barrels and B is sold by $65,000 per 1000 barrels.
If they are sold after going through the process: it takes 1 hour for 1000 barrels of A to go though the process and they can be sold for $145,000 per 1000. It takes 45 minutes for 1000 barrels of B to go through the process and they can be sold for $125,000 per thousand barrel.
Everyday, a maximum of 20,000 barrels can be sold, and the machine that does the process described above will work for a maximum of 8 hours.
a) What is the maximum daily profit?
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