Market value at split off method

Complete the following three questions using Microsoft Excel. No other submission format is allowed. Review the grading rubric to confirm you are meeting the assignment requirements.

Problem 1
Milwaukee Dairy Company produces cream, whole milk, and 2% milk. The joint cost of producing the three products is SAR 30,000. The split-off quantities and selling prices of each product are as follows:
Split-off Quantity (Gallons) Price at Split off (SAR)
Cream 550 19.00
Whole milk 4,000 13.00
2% milk 1,200 6.50

Required: Calculate how much of the joint costs should be allocated to each product using the market value at split off method.

Problem 2
The following information pertains to Delicious Bakery Company:
GIVEN: Janitorial Dept. Cafeteria Dept. Mixing Dept. Baking Dept.
Square feet 420 820 2800 2500
Number of employees 12 25 65 120
Department cost (SAR) 620,000 1,200,000 3,200,000 4,200,000

Required: Allocate Janitorial and Cafeteria department costs to mixing and baking departments using the Direct method. Use square feet for allocating janitorial costs and number of employees for allocating cafeteria department costs.

Problem 3
Maintenance Hours Maintenance Cost (SAR)
January 2,400 33,000
February 1,700 28,000
March 2,700 31,000
April 1,300 17,000
May 1,500 23,000
June 2,150 26,000


  1. Calculate variable cost per unit using the high-low method.
  2. Calculate fixed costs.
  3. Calculate estimated costs at 2,700 maintenance hours.
Problem 4
Given the following:
Total (SAR)
Sales (40,000 units) 4,600,000
Variable expenses 2,700,000
Contribution margin 1,900,000
Fixed expenses 1,250,000
Net operating income 650,000


  1. Calculate variable expense ratio
  2. Calculate contribution margin ratio
  3. Calculate break even sales in Units
  4. Calculate break even sales in SAR
  5. How many units must be sold to make a profit of 300,000 SAR?

Management is considering increasing the quality of its units by spending SAR 5 more per unit in variable costs and increasing advertising by SAR 80,000. Management believes these changes will increase unit sales by 20% at the same price.

    1. Calculate the new operating profit or loss.
  1. Explain whether management should make the change and why or why not.

You must show all your work for credit.

Kindly, can you please put the answers with cells formulas and write the steps formulas for each question and make sure to clear each question alone either in a side or different tab

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