[Total: 13] QUESTION 1 Forecast costs and revenues for Rek Ltd Number of units Sales Raw material Permanent labour | Manufacturing overheads Profit 10 000 Year 1 R 1 000 000 280 000 80 000 560 000 80 000 12 000 Year 2 R 1 200 000 336 000 80 000 660 000 124 000 Required: 1.1 Calculate the total profit at output levels 14 500 and 16 000 units. 1.2 Calculate the profit per unit at all four output levels. 1.3 Explain why the cost per unit declines as output level increases. (8) (4) (1)