Al Fathma LLC manufactures a line of equipment that it sells to wholesalers. The company sold 3,000 items of this type this year, which also has a one-year guarantee if the equipment fails. Based on experience, 25% of the items sold are returned for repairs.

Minor defects - 35% of the items returned can be repaired at a cost of OMR 120.

Major defects - 65% of the items need significant repair at a cost of OMR 150.

a. What should be the amount of provisions to be made in case of minor defects?

b. What should be the amount of provisions to be made in case of major defects?