0
You visited us 0 times! Enjoying our articles? Unlock Full Access!
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
$$1$$
B
$$2$$
C
$$3$$
D
$$4$$
Solution
Verified by Toppr

Correct option is C. $$3$$
Costing in the process of making and transporting oil are:
Extraction$$=$50$$
Transportation to and fro$$6+6=$12$$
Processing is done 3 times at $$ $9$$ each time$$3*9=27$$
Total Cost $$=50+12+27=$$ $$ $90$$
Selling Price=$$ $93$$
Profit$$=93-90=$3$$

Was this answer helpful?
0
Similar Questions
Q1
A barrel of crude oil is 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.)
View Solution
Q2
An oil company required 13000, 20000 and 15000 barrels of high grade, medium grade and low grade oil respectively. Refinery A produces 100, 300 and 200 barrels per day of high grade, medium grade and low grade oil respectively. While, refinery B produces 200, 400 and 100 barrels per day of high grade, medium grade and low grade oil respectively. If refinery A costs Rs 400 per day and refinery B costs Rs 300 per day to operate, then the days should each be run to minimize costs, while satisfying requirements are
View Solution
Q3
Some modern petroleum refineries process as much as _______ barrels (127,000 to 143,000 cubic meters) per day of crude oil.
View Solution
Q4

An oil refinery has four distillation towers and operates them as they are needed to process available raw materials. Each tower has fixed cost of Rs. 3000 per week whether operating or not. In addition, each tower, if in operation, will incur additional costs of Rs. 5000 per week. The raw material cost is fixed at Rs. 5 per gallon of refined oil, and each tower can process at most 10000 gallons of refined oil each week. Find the cost function C(x); x=number of gallons of refined oil for refinery. Check whether the function is continuous at x=10000.

View Solution
Q5
The crude oil extracted from the earth is separated into its constituents by a process called .....................
View Solution