A refinery produces both gasoline and fuel oil and sells gasoline for $1/gallon and fuel oil for $0.90/gallon. The refinery can produce at most 600,000 gallons a day, but must produce at least 2 gallons of fuel oil for every gallon of gasoline. At least 150,000 gallons of fuel oil must be produced each day to meet current demands. How much of each type of fuel should produce to maximize daily profits

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Business

Jessie Reyes

1 September, 11:49

A refinery produces both gasoline and fuel oil and sells gasoline for $1/gallon and fuel oil for $0.90/gallon. The refinery can produce at most 600,000 gallons a day, but must produce at least 2 gallons of fuel oil for every gallon of gasoline. At least 150,000 gallons of fuel oil must be produced each day to meet current demands. How much of each type of fuel should produce to maximize daily profits

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Karlie Burke · Answer 1

400,000 gallon's of fuel oil

200,000 gallon's of gasoline

Explanation:

Constraint 1: you must produce at least 2 gallons of fuel oil for every gallon of gasoline

So for every three gallons you must have 2 fuel oil and one gasoline.

Thus 600,000/3 = 200,000

200,000 * 2 = 400,000 fuel oil 200,000 * 1 = 200,000 gasoline

Constraint 2: is that at least 150,000 gallons of fuel oil must be produced. 400,000 is greater than 150,000