TUMA KA Municipal Council uses a feed forward approach in formulating its budget for performance analysis purposes . The following are the estimated details for the forth coming financial year - 1 January 2022 to 31 December 2022:

Production and Sales in units - 100000 units ( 80 % capacity)

K000

Sales Revenue 540000

Cost:

Direct Material 80000

Direct Labor 110000

Variable overheads 40000

Production overheads (hybrid cost, 70% variable

the rest fixed ) 60000

Rent (fixed ) 10000

Depreciation (fixed) 8000

Management Salaries (fixed) 70000

Other overheads (fixed) 65000

REQUIRED

Flex the budget to 70%, 60%, 90% and 100 % activity levels and. Determine the profit / (loss ) for the fixed budget ( 80% ) and flexed Budgets ( 10 marks )