Assuming you currently have 10,000 bbl of WTI crude, the total benefits to you if you were to sell the 10,000 bbl of WTI crude and use the proceeds to purchase and refine ANS crude is closest to ________

Alaska North Slope Crude Oil (ANS) $71.75/bbl
West Texas Intermediate Crude Oil (WTI) $73.06/bbl

As an oil refiner, you are able to produce $77 worth of unleaded gasoline from one barrel of Alaska North Slope (ANS) crude oil. Because of its lower sulfur content, you can produce $78 worth of unleaded gasoline from one barrel of West Texas Intermediate (WTI) crude.

A) $794,274
B) $780,000
C) $781,550
D) $784,091

Answer: D