Answer Happy

An oil company produces regular and premium gasoline for stations in the southeast United States. They create the two types of gasoline by blending three ingredients; component 1, 2 and 3. They want to know how to mix the ingredients to maximize profit. The table below shows the cost of each ingredient. The company sells regular gas for $2.50 per gallon and premium for $ 3.25 per gallon. Component Cost/Gallon Amount Available 1 $1.50 5,000 gallons 2 $1.75 10,000 gallons 3 $1.90 10,000 gallons The company has committed to sell 10,000 gallons of regular gas each week. The product specifications are listed below; Regular gasoline Must contain at most 30% of component 1 Must contain at least 40% of component 2 Must contain at most 20% of component 3 Premium gasoline Must contain at least 25% of component 1 Must contain at most 40% of component 2 Must contain at least 30% of component 3 Formulate this as an LP problem and label your variables and constraints.