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A company manufactures product A which yields two by-products X and Y. Joint cost incurred is OMR 40,000, of which, X and Y are accountable

A company manufactures product A which yields two by-products X and Y. Joint cost incurred is OMR 40,000, of which, X and Y are accountable for OMR 15,000. Further processing costs incurred are: OMR 3,000 for A, OMR 2,500 for X and OMR 1,000 for Y. Determine the profit earned on A, if the sales value of A is OMR 35,000.

a.

OMR 7,000

b.

OMR 3,500

c.

None of the options

d.

OMR 17,000

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