> --- In FairfieldLife@yahoogroups.com, "sparaig" <sparaig@> wrote:
> Well, from the figures I cite above, we know that at $75.00 a
> barrel, that $1.79 plus $.0364 ( which equals $2.154 ) is a cost of
> goods sold right off the bat.
Exxon doesn't have deals for under the open market price?
> That leaves $0.846 per gallon of contribution margin; that is, the
> oil company has 84.6 cents per each gallon of gas it sells to us to
> pay for transporting the oil, pay the salary of its employees, pay
> for the medical insurance and retirement benefits of its employees,
> pay its overhead, R&D, etc. etc.
> On a $3.00 price of a gallon of oil, 84.6 cents is a contribution
> margin of about 29%.
> Hardly a windfall...
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