
Revenue The manufacturing process requires that oil refineries must manufacture at least 2 gal of gasoline for every gallon of fuel oil. To meet the winter demand for fuel oil, at least 3 million gal a day must be produced. The demand for gasoline is no more than 6.4 million gal per day. It takes 15 minutes to ship each million gal of gasoline and 1 hour lo ship each million gal of fuel oil out of the warehouse. No more than 4 hours and 39 minutes are available for shipping.
(a) If the refinery sells gasoline for $2.50 per gal and fuel oil for $2 per gal how much of each should be produced to maximize revenue?
(b) Find the maximum revenue.
(c) Suppose the price for fuel oil begins to increase. Beyond what amount would this price have to increase before a different amount of gasoline and fuel oil should be produced to maximize revenue?

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