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2 UESTION 2 The finance director ( FD ) has been tasked by the board to calculate the profit of changin costing system from variable

2UESTION 2
The finance director (FD) has been tasked by the board to calculate the profit of changin costing system from variable to absorption costing. The FD has requested you ga necessary information and provide the relevant calculations.
You obtained the following information:
\table[[Detail,],[Units produced/manufactured during the period,32,000],[Units sold during the period,27,000],[Variable cost per unit,R100],[Selling price per unit,R250],[\table[[Total fixed costs for the period (NB: Includes],[R 960,000 fixed manufacturing costs)]],R1,500,000]]
2.1 Compare the profitability of the two costing systems.
2.2 Explain the difference in profitability in the previous question
2.3 would happen to profit figures in period 2 if 27,000 units are manufactured and 32,000 units are sold, considering 5,000 units of initial inventory from period 1
2.4 Which costing system would you recommend and why?
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