2. ToysRNZ produces and sells plastic lightsabres for $20 each. Their variable cost is $16 each. Relevant fixed costs are $120,000. ToysRNZ sells all lightsabres it produces, there is no inventory of unsold lightsabres. The relevant range of pro- duction is between 5,000 and 40,000 lightsabres. All information in this question relates to a single fiscal year. (a) What should the production level be if ToysRNZ wants to achieve a profit of $30,000? (6 marks) (b) Because of the new Star Wars release, demand increases by 12,500 lightsabres. This will push production significantly beyond the relevant range. To sat- isfy the higher demand, ToysRNZ can rent additional production capacity. In order to maintain a profit of $30,000, what is the maximum amount that ToysRNZ should pay for the additional capacity? 3. Explain one important disadvantage of activity based costing. (6 marks) (4 marks)