How many gallons satisfy daily demand at a minimum cost


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Q: Seastrand Oil Company produces two grades of gasoline: regular and high octane. Both gasolines are produced by blending two types of crude oil. Although both types of crude oil contain the two important ingredients required to produce both gasolines, the percentage of important ingredients in each type of crude oil differs, as does the cost per gallon. The percentage of ingredients A and B in each type of crude oil and the cost per gallon are shown.

Crude Oil Cost          Ingredient A                  Ingredient B
1                            $0.20           10%                       50%
2 $0.25 40%                       20%

Each gallon of regular gasoline must contain at least 30% of ingredient A, whereas each gallon of high octane can contain at most 40% of ingredient B. Daily demand for regular and high-octane gasoline is 800000 and 400000 gallons, respectively. How many gallons of each type of crude oil should be used in the two gasolines to satisfy daily demand at a minimum cost?

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