A Southern Oil Company produces two grades of gasoline; Regularand Premium. The profit contributions are $0.30 per gallon forregular gasoline and $0.50 per gallon for premium gasoline. Eachgallon of regular gasoline contains 0.3 gallons of grade A crudeoil and each gallon of premium gasoline contains 0.6 gallons ofgrade A crude oil. For the next production period, Southern has18,000 gallons of grade A crude oil available. The refinery thatused to produce the gasoline has a production capacity if 50,000gallons for the next production period. Southern Oils distributorshave indicated that demand for the premium gasoline for the nextproduction period will be at most 20,000 gallons.
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