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Professor Kennedy makes a product which has a sales value of $10,000 at the split-off point. Sales value increases to $15,000 after further processing, and

Professor Kennedy makes a product which has a sales value of $10,000 at the split-off point. Sales value increases to $15,000 after further processing, and this processing will cost $7,000. What is the net profit or loss if she processes the product further?

$5,000 gain

$2,000 gain

$2,000 loss

$5,000 loss

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