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Question
A barrel of crude oil id extracted from shale at a cost of $51, and then transported to and from the refinery at a cost of $6 each direction. Oil is processed three times at the refinery plant, at a cost of $9 each time. What is the profit, in dollars per barrel, if one barrel is sold for $93? (Profit is equal to revenue minus expenses.)
A barrel of crude oil id extracted from shale at a cost of $51, and then transported to and from the refinery at a cost of $6 each direction. Oil is processed three times at the refinery plant, at a cost of $9 each time. What is the profit, in dollars per barrel, if one barrel is sold for $93? (Profit is equal to revenue minus expenses.)
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Solution
The correct option is C 3
Costing in the process of making and transporting oil are:Extraction=50$Transportation to and fro6+6=12$Processing is done 3 times at 9eachtime3*9=27$Total Cost =50+12+27= 90$Selling Price=93$Profit=93−90=3$
Costing in the process of making and transporting oil are:
Extraction=50$
Transportation to and fro6+6=12$
Processing is done 3 times at 9eachtime3*9=27$
Total Cost =50+12+27= 90$
Selling Price=93$
Profit=93−90=3$
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