hance for performance evaluation purposes? Part C: (6 marks) Ahmad Company produces two products, M and Z. In the year ending 30 April 2020, it produced 6,000 M and 12,500 Z and incurred costs of $1,850,000 The costs incurred are such that 30% are variable. 60% of these variable costs vary with the number of Z produced, with the remainder varying with the output of M. | Page 2 The budget for the three months to 31 October 2020 is being prepared using an incremental approach based on the following: All costs will be 6% higher than the average paid in the year ended 30 April 2020. Efficiency levels will be unchanged. Expected output: M 1,350 units Z 6,890 units . Instructions: What is the budgeted cost for the output of M (to the nearest S100) for the 3 months ending 31 October 2020