Linear programming The Grand Strand Oil Company The Grand Strand Oil Company produces regular and premium gasoline for independent service stations in the southeastern United States. The Grand Strand refinery manufactures the gasoline products by blending three petroleum components. The gasoline is sold at different prices, and the petroleum components have different costs. The firm wants to determine how to mix or blend the three components into the two gasoline products and maximize profits. The regular gasoline can be sold for $1.00 per gallon and premium gasoline for $1.08 per gallon. For the current production planning period, Grand Strand can obtain the three petroleum components at the cost per gallon and in the quantities shown in Table1. Product specifications for the regular and premium gasoline restrict the amounts of each component that can be used in each gasoline product. Table 2 lists the product specifications. Current commitments to distributors require Grand Strand to produce at
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