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.
Another oil refiner is offering to trade you of Alaska North Slope (ANS) crude oil for of West Texas Intermediate (WTI) crude oil. Assuming you just purchased of WTI crude at the current market price, the total revenue (cost) to you if you take the trade is closest to ________.
A) $755,650
B) $766,150
C) $767,600
D) $776,650

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.
Another oil refiner is offering to trade you  of Alaska North Slope (ANS) crude oil for  of West Texas Intermediate (WTI) crude oil. Assuming you just purchased  of WTI crude at the current market price, the total revenue (cost) to you if you take the trade is closest to ________.
A) $755,650 
B) $766,150 
C) $767,600 
D) $776,650

Quizplus · Accepted Answer

The Answer is C

Use the Information for the Question(s) Below