Use the Information for the Question(s)below

question 87

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 10,100 bbl of Alaska North Slope (ANS) crude oil for 9,950 bbl of West Texas Intermediate (WTI) crude oil. Assuming you just purchased 9,950 bbl 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

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Definitions:

Envelopes

In a biological context, refers to membranous structures that enclose or encapsulate parts of cells or viruses.

Unprofitable

Describing a business or operation that generates a financial loss rather than a profit.

Department

A distinct part of an organization with a specific function or group of related functions.

Payroll Items

Various components that make up an employee's pay, including wages, bonuses, deductions, and taxes.