Use the information for the question(s)below. As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS)crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI)crude.
-Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the added benefit (cost)to you if you were to refine this crude oil and sell the unleaded gasoline is closest to:
A)$730,600.
B)$39,400.
C)$770,000.
D)-$39,400.

Question

Use the information for the question(s)below.  As an oil refiner,you are able to produce $76 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS)crude oil.Because of its lower sulfur content,you can produce $77 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI)crude.
-Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the added benefit (cost)to you if you were to refine this crude oil and sell the unleaded gasoline is closest to:
A)$730,600. 
B)$39,400. 
C)$770,000. 
D)-$39,400.

Quizplus · Accepted Answer

The added benefit (cost) is calculated by considering the difference in value between the refined product (unleaded gasoline) and the crude oil, accounting for refining costs. The closest value to this difference is $39,400.

Use the Information for the Question(s)below