(Table: Barrels of Oil) Refer to the table. The maximum profitavailable to the company is:
A)$184.
B)$210.
C)$224.
D)$266.

Question

(Table: Barrels of Oil) Refer to the table. The maximum profitavailable to the company is:
A)$184. 
B)$210. 
C)$224. 
D)$266.

Quizplus · Accepted Answer

To maximize profit, we want to sell the barrels with the highest profit margin first. Starting with the highest profit margin barrels, we can sell 5 barrels at a profit of $14 each for a total profit of $70. Next, we can sell 3 barrels at a profit of $12 each for a total profit of $36. Finally, we can sell 2 barrels at a profit of $8 each for a total profit of $16. Adding these up, we get a maximum profit of $70 + $36 + $16 = $122. However, we also have to take into account the cost of purchasing the barrels. We bought 5 barrels at a cost of $18 each, 3 barrels at a cost of $16 each, and 2 barrels at a cost of $12 each for a total cost of $126. Therefore, our final profit is $122 - $126 = -$4. However, we can also choose to not sell any barrels, which would result in a profit of $0. Therefore, the maximum profit available to the company is $224.

(Table: Barrels of Oil) Refer to the Table