Use the Information Below to Answer the Following Question(s)

Multiple Choice

Use the information below to answer the following question(s) .Troy Company processes 15,000 litres of direct materials to produce two products, Product X and Product Y.Product X, a byproduct, sells for $4 per litre, and Product Y, the main product, sells for $50 per litre.The following information is for August:
The manufacturing costs totalled $95,000.
-What is the net effect to the income statement for the sale of byproduct, if byproducts are recognized at the point of sale?

A) $0
B) $1,500
C) $16,000
D) $17,500
E) $20,000