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Question
An oil company controls two oil fields. Field 1 can produce up to 45 million barrels of oil per day, and field 2 can produce up to 55 million barrels of oil per day. At field1, it costs $3 to extract and refine a barrel of oil; at field 2, the cost is $2. The company sells oil to two countries: France and Japan. The shipping costs per barrel are shown below.
Each day, France is willing to buy up to 45 million barrels (at $6 per barrel), and Japan is willing to buy up to 35 million barrels (at $6.50 per barrel). Determine how to maximize the company's profit.
Answer
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