Use the Information for the Question(s) Below

question 21

Multiple Choice

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 10,150 Bbls of Alaska North Slope (ANS) crude oil for 10,000 Bbls of West Texas Intermediate (WTI) crude oil.Assuming you just purchased 10,000 Bbls of WTI crude at the current market price,the total benefit (cost) to you if you take the trade is closest to:

• A) $730,600
• B) $770,000
• C) $771,400
• D) $773,908

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Definitions:

Effervescence

The property of releasing gas bubbles when reacting with a liquid; often observed in minerals and compounds that fizz or bubble when acid is applied.

Magmatism

The process of magma generation, movement, and solidification, which contributes to the formation of igneous rocks.

Cleavage

The tendency of a mineral to break along flat, well-defined planes, reflecting its crystal structure.

Hematite

An iron oxide metal that has a reddish streak and commonly forms under oxidizing conditions.