Al Maha Co. produces 1,200 units of petroleum with direct materials costs of RO 32,000, Direct Labor costs of RO 12,000, Variable Overhead costs of RO 25,000 and Fixed Overhead costs of RO 22,000. Omanoil Co. offers to produce the units of petroleum at RO 72 per unit. (Make or Buy Decision) The cost to make the petroleum is:

Select one:

a. 84,000

b. 80,000

c. 12,0000

d. 69,000

e. None of the answers are correct

Al Maha Co. produces 1,200 units of petroleum with direct materials costs of RO 32,000, Direct Labor costs of RO 12,000, Variable Overhead costs of RO 25,000 and Fixed Overhead costs of RO 22,000. Omanoil Co. offers to produce the units of petroleum at RO 72 per unit. (Make or Buy Decision) The cost to buy the petroleum is:

Select one:

a. 12,0000

b. 80,000

c. 86,400

d. None of the answers are correct

e. 69,000