QUESTION 3 (17) Mvete Limited is an established company in the manufacturing industry. The company is manufacturing a very successful product, namely Vetel2. The following cost structure is given to you, the newly appointed Trainee Cost Accountant, to advise management on the different levels of production: At the current level of 15 000 units produced and sold: Direct material R20 per unit Direct labour R375 000 Indirect material R5 per unit Indirect labour (includes the production supervisors' salary of R240 000. The remainder is R5.50 per unit R352 500 Other manufacturing overheads (all variable) R12.50 per unit Depreciation charge PPE (production plant and machinery) R375 000 Selling and administrative expenses: Variable selling expenses R10.25 per unit Fixed selling expenses RS per unit Administrative expenses (all fixed) R7 per unit Required a) Calculate at the three (3) different production levels of 15 000 units (current level of production) 20 000 units, 12 000 units The variable manufacturing cost per unit, (6) The fixed manufacturing cost per unit, iiiThe total manufacturing cost per unit. (1) b) Why is there a difference in the unit cost? Discuss briefly (2) c) Assume the company produces and sell 20 000 units, and wishes to make a net profit of R10 per unit. What would be the expected selling price per unit