the module is cost management accounting

COST AND MANAGEMENT ACCOUNTING || Question 5 (20) The activity level of this manufacturing company is currently 50%. The company manufactures and sells only one product. The cost accountant provided you with the following manufacturing and sales information at a 50% activity level for a financial period: Sales 12 000 units Selling price per unit R200 Variable costs R110 per unit Total fixed costs for the period R580 000 You were also provided with the following additional information: A survey has revealed that because of strong competition the company must drastically reduce its selling prices in the future it it is to remain competitive in the South African market. The company can increase the activity level to 80% without any change in fixed costs. The company wants to achieve a 10% increase in profit. Required: Show all calculations. Round off all amounts to the nearest rand. The cost accountant asked you to assist him with the following that will enable management to make the correct short-term decision regarding price determination: 5.1. Prepare a statement of profit or loss at a 50% activity level. (7) 5.2. Calculate the units of the product at the 80% activity level. (3) 5.3. Calculate the sales revenue at the 80% activity level that will achieve the required 10% increase in profit. (7) 5.4. Calculate the new selling price per unit if the activity level is 80%. (3)