They extracted 547 litres of oil.
Every 8 coconuts make 1 litre. So the number of litres is the number of groups of 8 inside 4376. That is a division.
Susie's way — small chunks.
−1600 → 2776
−1600 → 1176
−800 → 376
−320 → 56
−56 → 00
200 + 200 + 100 + 40 + 7 = 547
Sunitha's way — the biggest chunk first. She thinks: 8 × 500 = 4000, and 4000 is close to 4376.
−4000 → 376
−320 → 56
−56 → 00
500 + 40 + 7 = 547
Answer: 547 litres of oil.