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 O B. $766,150 OC. $767,600 D. $770,032

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 O B. $766,150 OC. $767,600 D. $770,032

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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 currently have 10,000 Bbls of WTI crude, what is the added benefit (cost) to you if you take the trade?
United Oil Company is attempting to develop a reasonably priced unleaded gasoline that will deliver higher gasoline mileages than can be achieved by its current unleaded gasolines. As part of its development process, United Oil wishes to study the effect of two independent variables—x1, amount of gasoline additive RST (0, 1, or 2 units), and x2, amount of gasoline additive XST (0, 1, 2, or 3 units), on gasoline mileage, y. Mileage tests are carried out using equipment that simulates driving under prescribed conditions. The combinations of x1 and x2 used in the experiment, along with the corresponding values of y, are given below. RSTUnits(x1) XSTUnits(x2) Gas Mileage(y, mpg) 0 0 27.30 0 0 28.25 0 0 28.61 1 0 29.45 1 0 30.69 2 0 28.26 2 0 29.27 0 1 32.50 0 1 33.55 1 1 33.76 1 1 34.94 0 2 32.73 0 2 33.75 1 2 34.43 1 2 35.45 1 2 35.92 Run the…
A producer of synthetic motor oil for automobiles and light trucks has made the following statement: “One quart of Dynolube added to your next oil change will increase fuel mileage by one percent. This one-time additive will improve your fuel mileage over 50,000 miles of driving.” a. Assume the company’s claim is correct. How much money will be saved by adding one quart of Dynolube if gasoline costs $4.00 per gallon and your car averages 20 miles per gallon without the Dynolube? b. If a quart of Dynolube sells for $19.95, would you use this product in your automobile?
Energy Products Company produces a gasoline additive, Gas Gain. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. If the controls are not effective, there can be a loss of output and efficiency. The standard cost of producing a 500-liter batch of Gas Gain is $135.00. The standard direct materials mix and related standard cost of each chemical used in a 500-liter batch are as follows: Chemical Mix SP Standard Cost Echol 200 liters $0.200 $40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 Total 600 liters $135.00 The quantities of chemicals purchased and used during the current production period are shown in the following schedule. A total of 230…
Sheridan Service sells oil at a markup of 50% of the selling price. Sheridan paid $0.85 per litre of oil. (a) What is the selling price per litre? (b) What is the rate of markup based on cost? (a) The selling price per litre is S (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) Help me solve this View an example Textbook Clear all Check answer
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $143. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 280 $ 0.200 $ 56.00 Protex 180 0.425 76.50 Benz 330 0.150 49.50 СТ-40 130 0.300 39.00 920 $ 221.00 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 220 batches of Charger Power were manufactured during the current production period. The…
Required information [The following information applies to the questions displayed below.] Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A customer who supplies the parts (oil and filter) is charged $36 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $36 for the parts. The parts cost GAO $30. Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts. Allocated Transaction Price Parts Service
Required information [The following information applies to the questions displayed below.] Great American Oilchange (GAO) sells a combined oil change service and parts package for $46. A customer who supplies the parts (oil and filter) is charged $36 for only the service, whereas a customer who buys only the oil and filter (for do-it-yourself use) is charged $36 for the parts. The parts cost GAO $30. Required: 1. Determine the dollar amount of revenue from the oil change service versus the sale of parts for each combined oil change package. TIP: To calculate the percentage of the combined package that relates to the service, divide the stand-alone selling price of the service by the combined stand-alone selling prices of both the service and parts. * Answer is complete but not entirely correct. Allocated Transaction Price Parts 15 X Service $ 15 x
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Std cost per liter $0.200 0.425 0.150 0.300 Std input Chemical quantity Echol 200 Protex Benz CT-40 100 250 50 600 The quantities of chemicals purchased and used during the current production period are shown in the schedule below. A total of 149 batches of Charger Power were manufactured during the current production period. The controller of BE has determined its costs and chemical…
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to ensure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are…
A trader wants to open an oil shop in the area with a choice of the B City, J Cityor D City. Each of these area options has a local supplier providingThe price quote for the oil is detailed in the table below. Area Fixed Cost Variabel Cost B City 5,500,000 55,470,000 J City 11,500,000 35,500 D City 21,500,000 15,500 How much volume must be met in order to obtain economic value per area? Determine the volume range for each area AND Sketch a crossover chart that illustrates these conditions!
The Becton Enterprises (BE) produces a gasoline additive, Charger Power. This product increases engine efficiency and improves gasoline mileage by creating a more complete burn in the combustion process. Careful controls are required during the production process to insure that the proper mix of input chemicals is achieved and that evaporation is controlled. Loss of output and efficiency may result if the controls are not effective. The standard cost of producing a 500-liter batch of Charger Power is $135. The standard materials mix and related standard cost of each chemical used in a 500-liter batch are: Chemical Std input quantity Std cost per liter Total cost Echol 200 $ 0.200 $ 40.00 Protex 100 0.425 42.50 Benz 250 0.150 37.50 CT-40 50 0.300 15.00 600 $ 135.00 The quantities of chemicals purchased and used during the current production period are…

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