Windhoek Traders (WT) was formed on the 1 March 2022. The company produces one product known as the Product W. The following information relates to the planned operations for the 2023 financial period: Forecast for the Year ended 28 February 2023 TOTAL N$ Sales (90 000 units) 1 010 000 Total costs 985 000 Direct materials 350 000 Variable production overheads 50 000 Direct labour 200 000 Fixed production overheads 180 000 Variable selling and administration costs 80 000 Fixed selling and administration cost 125 000 Profit 25 000 The following information relates to the actual results for the year ended 28 February 2023: Sales 90 000 units @ N$10.10 Opening inventory Nil Closing inventory 8 000 units The management accountant of WT had prepared a profit or loss statement on 28 February 2023 on a variable costing basis, which showed a loss. However, the profit statement prepared on an absorption-costing basis at the same date showed that WT had earned a profit. The company policy is to apply manufacturing overh