Question

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

Answer 1

The correct answer is: $20

Explanation:

As we are interested in finding the cost for a barrel of gasoline, we need to read the percentage of gasoline from the pie-chart first—which is 34%.

Now number of barrels containing gasoline = 34% of 60 million barrels = $\frac{34}{100} * 60 = 20.4$ million barrels

For all the barrels, the total income is $408 million; therefore, in order to find the per-barrel cost, we need to divide $408 by 20.4:

$\frac{408}{20.4} = \ 20$

Hence the correct answer is $20.

Answer 2

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.

($408·10^6)/(60·10^6 bbl × 0.34) = $408/(20.4 bbl) = $20/bbl

The income from one barrel of gasoline is $20.00.