Week 3
Week 3
Week 3
• Each gallon of regular gasoline contains 0.3 gallons of crude A oil and
each gallon of premium gasoline contains 0.6 gallons of crude A oil.
• For the next production period, Southern has 18,000 gallons of crude
A oil available. The refinery used to produce the gasolines has a
production capacity of 50,000 gallons for the next production period.
Southern Oil’s distributors have indicated that demand for premium
gasoline for the next production period will be at most 20,000 gallons.