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The company purchases purchases natiural gas from two companies: Southern Gas and Northwest Gas

Management Sep 29, 2020

The company purchases purchases natiural gas from two companies: Southern Gas and Northwest Gas. Deman forecasts for the coming winter season are as follows: Hamilton County, 400 units; Butler County, 200 units; and Clermont County, 300 units. Contracts to provide the following quanities have been written: Southern Gas, 500 units; and Northwest Gas, 400 units. Distribution costs for the counties vary, depending upon the location of the suppliers. The distribution costs per unit (in thousands of dollars) are as follows:
To
From Hamilton Butler Clermont
Southern Gas 10 20 15
Northwest Gas 12 15 18

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