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South Coast Papers wants to mix two lubricating oils (A and B) for its machines in order to minimize cost. It needs no less than 3,000 gallons in order to run its machines during the next month. It has a maximum oil storage capacity of 4,000 gallons. There are 2,000 gallons of Oil A and 4,000 of Oil B available. The mixed fuel must have a viscosity rating of no less than 40.
When mixing fuels, the amount of oil obtained is exactly equal to the sum of the amounts put in. The viscosity rating is the weighted average of the individual viscosities, weighted in proportion to their volumes. The following is known: Oil A has a viscosity of 45 and costs 60 cents per gallon; Oil B has a viscosity of 37.5 and costs 40 cents per gallon.
State the objective and the constraints of this problem. Plot all constraints and highlight the feasible region. Use your (by now, well-developed) intuition to suggest a feasible (but not necessarily optimal) solution. Be certain to show that your solution meets all constraints.
Quantum Meruit
A legal principle where a party is compensated with a reasonable sum for goods or services provided, even if no contract exists.
Quantum Valebant
A principle in contract law that allows for the recovery of as much as deserved, or the reasonable value of goods or services rendered when no contract price was established.
Commission
A fee paid to an agent or employee for conducting a transaction or performing a service.
Promotional Costs
Expenses associated with marketing and advertising a business's products or services.
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