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Cronus Airlines has a contract that gives them the opportunity to purchase up to 6,000,000...

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Verified Solution

Question

Accounting

Cronus Airlines has a contract that gives them the opportunity to purchase up to

6,000,000

gallons of jet fuel at

$3.00

per gallon. The current market price of jet fuel is

$3.40

per gallon. Cronus believes they will only need

4,000,000

gallons of jet fuel. What is the value of this opportunity?

A.

$2,000,000

B.

$2,400,000

C.

$800,000

Answer & Explanation Solved by verified expert
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