REQUIRED Use the information provided below to prepare the performance report for Lonmin Limited.

INFORMATION Lonmin Ltd manufactures a single product. It originally planned to produce and sell 18 000 units during the year but the actual activity level was 22 000 units. The budgeted and actual income and cost for the year are as follows:

	Original Budget	Actual results
Volume	18 000 Units	22 000 Units
	R	R
Sales	2 520 000	3 300 000
Cost of sales	(1 670 000)	(2 132 000)
Direct Materials	720 000	924 000
Direct labour	450 000	594 000
Variable overheads	180 000	264 000
Fixed overheads	320 000	350 000
Gross Profit	850 000	1 168 000