Please write in MIC Word

1. AlMarai processes raw milk into various products. 1,000 Liters of raw milk can be converted for SR 20,000 into 1,000 bottles of 0.5 Liter of Laban and 1,000 bottles of 0.5 Liters of processed milk. A bottle of 0.5 Liter of Laban can be sold at split-off for SR 5 and a bottle of 0.5 Liters of processed milk can be sold for SR 10. AlMarai can process the 1,000 bottles of processed milk into 600 cans of fresh cream at an additional cost of SR 3,000. Each can of fresh cream can be sold for SR15. The 1,000 bottles of Laban can be processed at a cost of SR2,000 and made into 400 cans of Labne. A can of Labne can be sold for SR 12.

	Laban	Processed Milk	Labne	Fresh Cream
Joint Cost	SR 20,000
Separable Costs			SR2,000	SR3,000
Production	1,000	1,000	400	600
Selling Price	SR 5	SR 10	SR18	SR 21

Allocate the joint cost of SR 20,000:

1. Between Laban and Processed Milk using Sales value at split-off method (1pt)
2. Between Laban and Processed Milk using the physical-measure method(1pt)
3. Between Labne and Fresh Cream using NRV method (1pt)
4. Should AlMarai have processed each of the products further? (2pts)