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 currently have 10,000 Bbls of WTI crude,the added benefit (cost)to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to:
A)($1400)
B)$1400
C)($3908)
D)$3908
E)$2508

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 currently have 10,000 Bbls of WTI crude,the added benefit (cost)to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to:
A)($1400) 
B)$1400 
C)($3908) 
D)$3908 
E)$2508

Quizplus · Accepted Answer

If the refiner uses 10,000 Bbls of WTI crude, they can produce unleaded gasoline worth: 
$77 x 10,000 = $770,000. 
If they were to sell the 10,000 Bbls of WTI crude, they would receive:
$76 x 10,000 = $760,000. 
The added benefit would be the difference:
$770,000 - $760,000 = $10,000. 
However, the question is asking for the added benefit/cost if they were to purchase and refine ANS crude instead. The cost of purchasing one barrel of ANS crude is not given, so it is impossible to calculate the exact added benefit/cost. Therefore, the best choice is D, which is the closest to the calculated added benefit of $10,000: 
D) $3908.

Use the Information for the Question(s)below