Use the information for the question(s) below. As an oil refiner, you are able to produce $77 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $78 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Assuming you currently have 10,000 bbl of WTI crude, the total benefits to you if you were to sell the 10,000 bbl of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________.
A) $794,274
B) $780,000
C) $781,550
D) $784,091

Question

Use the information for the question(s) below.  As an oil refiner, you are able to produce $77 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $78 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.
Assuming you currently have 10,000 bbl of WTI crude, the total benefits to you if you were to sell the 10,000 bbl of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________.
A) $794,274 
B) $780,000 
C) $781,550 
D) $784,091

Quizplus · Accepted Answer

D) Total Benefits
Sell WTI and use proceeds to buy ANS 11ea84dc_f57e_f0b7_9a63_11bcc5c16fa2_TB1316_11_TB1316_11 Buy ANS crude 11ea84dc_f57e_f0b8_9a63_b142643eaf42_TB1316_11_TB1316_11 or approx 11ea84dc_f57e_f0b9_9a63_e1d1c59e0606_TB1316_11_TB1316_11 11ea84dc_f57e_f0ba_9a63_b9601c5fe54a_TB1316_11_TB1316_11

Use the Information for the Question(s) Below