Use the information for the question below. $71.75/Bbl $73.06/Bbl Alaska North S

Question

Use the information for the question below. $71.75/Bbl $73.06/Bbl Alaska North Slope Crude Oil (ANS) West Texas Intermediate Crude Oil (WTI) 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 9,950 Bbls of WTI crude, the total benefits to you if you were to sell the 9,950 Bbls of WTI crude and use the proceeds to purchase and refine ANS crude is closest to: O A. $780,164 OB. $766,150 O C. $767,600 OD. $770,032

Explanation / Answer

Number of bbls of WTI Crude = 9950

Worth of unleaded gasolene from one barrel = $77

Total Benefits = 9950 * $77 = $766150

Correct Option is B)$766150

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