# An oil company must determine how many barrels of oil to extract during each of the next two years. If the company extracts x 1 million barrels during year 1, each barrel can be sold for 80 − x 1 dollars. If the company extracts x 2 million barrels during year 2, each barrel can be sold for 85 − x 2 dollars. The cost of extracting x 1 million barrels during year 1 is 2 x 1 2 million dollars, and the cost of extracting x 2 million barrels during year 2 is 3 x 2 2 million dollars. A total of 20 million barrels of oil are available, and at most \$250 million can be spent on extraction. Determine how the company can maximize its profit (revenues less costs) for the next two years.

### Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

### Practical Management Science

6th Edition
WINSTON + 1 other
Publisher: Cengage,
ISBN: 9781337406659

#### Solutions

Chapter
Section
Chapter 7, Problem 65P
Textbook Problem

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