Saudi Electronic University Cost Volume Profit Analysis

Saudi Electronic University Cost Volume Profit Analysis.
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

Maintenance
Maintenance

Hours
Cost (SAR)

January
1,000
45,550

February
1,500
52,000

March
2,100
61,500

April
1,800
57,500

May
800
42,000

June
1,100
47,000

Calculate variable cost per unit using the high-low method.
Calculate fixed costs.

Problem 2

Total
Per Unit
Percent of Sales

Sales (40,000 units)
2,400,000
60
100%

Variable expenses
1,600,000
40
? %

Contribution margin
800,000

? %

Fixed expenses
500,000

Net operating income
300,000

Calculate variable expense ratio.
Calculate contribution margin ratio.
Calculate break even sales in units (show your work).
Calculate break even sales in Dollars.
How many units must be sold to make a profit of SAR 200,000.

Management is considering increasing quality of its units by spending SAR 3 more per unit in variable costs and adding a quality inspector for an additional SAR 60,000 annual fixed cost. Management believes this change will increase unit sales by 10% at the same price.

Calculate the new operating profit or loss.
Should management make the changes?

Problem 3

GIVEN:
Janitorial
Dept.

Cafeteria
Dept.

Mixing
Dept.

Baking
Dept.

Square feet
100
200
1500
3000

Employee count
20
30
80
100

Department cost (SAR)
100,000
150,000
400,000
500,000

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.
You must show all your work.

Saudi Electronic University Cost Volume Profit Analysis