Use the Information for the Question(s)below

question 10

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 currently have 10,000 Bbls of WTI crude,the added benefit (cost) to you if you were to sell the 10,000 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to:

• A)($1400).
• B)$1400.
• C)($3908).
• D)$3908.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in the market.

Consultation Fee

A fee charged by experts to provide advice or services in their field of expertise.

Share Issue Costs

Costs incurred by a company when it issues new shares of stock, including fees for legal services, accounting, underwriting, and registration.

Cost of Acquisition

The total of all expenses incurred to acquire an asset or business, including the purchase price and related costs.