Boekenhout $($Pty$)$ Ltd opened its doors for the first time on the $1$st of January $2021.$ It budgeted for production

and sales of $25,000$ units for the year $2022$ financial year. Boekenhout achieved the following results for the year:

Sales $23,500$ units

Selling Price R $20$ per unit

Manufacturing costs:

Direct material R $4,5$ per unit

Direct labour R $2,5$ per unit

Variable Overhead R $3$ per unit

Fixed Manufacturing Costs R$100,000$

Selling and administration Costs

Variable R $1$ per unit sold

Fixed R$10,000$

Production $25,000$ units

Value of raw material opening stock R$200,000$

Value of raw material closing stock R$230,000$

Opening Inventory of finished goods $500$ units

Opening and Closing Stock of WIP inventory $0$ units

Required

a Prepare the absorption costing income statement for Boekenhout for the $2022$ financial year

b Provide the operating income for the same period as it would be under variable costing by using the short$-$cut method

c Prepare the variable costing income statement for Boekenhout for the $2022$ financial year

d Calculate the value of raw materials purchased during the year

e Provide a reason why companies would use variable costing compared to absorption costing

f Calculate the break$-$even in units and sales for Boekenhout for $2022$

g Calculate the degree of operating leverage for Boekenhout for $2022$

h By referring to your answer in $($g$),$ calculate the operating income if unit sales increase by $10\%$