If the total income generated from gasoline for AER was $408 million how much would be the cost for a barrel of gasoline, gasoline 34% kerosene 14% 60 million barrels total production crude oil

Accepted Solution

The problem statement appears to be trying to tell you that 60 million barrels of crude were processed, resulting in 34% of that volume being turned into gasoline, which was then sold for a total of $408 million. You are asked for the revenue associated with 1 barrel of gasoline.

($408Β·10^6)/(60Β·10^6 bbl Γ— 0.34) = $408/(20.4 bbl) = $20/bbl

The income from one barrel of gasoline is $20.00.