Southern California Chemical Company manufactures two industrial chemical products, called kreolitered and kreolite-blue. Two machines are used in the process, and each machine has 24 hours of capacity per day. The following data are available:                                                             Kreolite-Red                   Kreolite-Blue Selling price per drum ................................... $36                                    $42Variable cost per drum .................................. $28                                    $28Hours required per drum on machine I .. 2 hr                                    2 hrHours required per drum on machine II . 1 hr                                    3 hr The company can produce and sell partially full drums of each chemical. For example, a half drum of kreolite-red sells for $18. Required:1. Formulate the product-mix problem as a linear program.2. Solve the problem graphically.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Southern California Chemical Company manufactures two industrial chemical products, called kreolitered and kreolite-blue. Two machines are used in the process, and each machine has 24 hours of capacity per day. The following data are available:

                                                            Kreolite-Red                   Kreolite-Blue 
Selling price per drum ................................... $36                                    $42
Variable cost per drum .................................. $28                                    $28
Hours required per drum on machine I .. 2 hr                                    2 hr
Hours required per drum on machine II . 1 hr                                    3 hr

The company can produce and sell partially full drums of each chemical. For example, a half drum of kreolite-red sells for $18.

Required:
1. Formulate the product-mix problem as a linear program.
2. Solve the problem graphically.

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