Use the Information for the Question(s)below

question 73

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. Assuming you just purchased 9,950 bbl of WTI crude at the current market price, the total revenue (cost) to you if you were to refine this crude oil and sell the unleaded gasoline is closest to ________.

• A)($766,150)
• B)$766,150
• C)($770,032)
• D)$770,032

Analyze investment proposals using appropriate financial metrics and tables.

Evaluate the effect of special orders on net income under varying circumstances.

Critically analyze the limitations of different capital budgeting techniques, including the payback method.

Understand the concept of internal integration and external adaptation in organizations.

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Definitions:

Marginal Tax Rate

The rate at which the next dollar of income will be taxed. Generally the taxpayer’s bracket rate.

Depreciation

The reduction in value of an asset over time, due in particular to wear and tear.

Labor Cost

Labor cost refers to the total expenditure incurred by an employer to compensate its employees, including wages, benefits, and taxes.

Net Cash Flow

The difference between a company's cash inflows and outflows within a specific period, indicating its overall liquidity.