QUESTIONTWO [25] Pink (Pty) Ltd is considering changing its method of inventory valuation from the absorption costing to direct costing and consulted you to determine the effect of this proposed change on the 2022 financial statements. The company manufactures a Purple, which is sold for R20 per unit. Production capacity is budgeted at 100000 units of Purple annually. At this level of production, the costs per unit are: Required: 2.1 Prepare a Statement of Financial Performance on a variable cost basis with an adjustment for the change in the inventory valuation. 22 Discuss with calculations what the olfect on the profit of Blue Incorporate would be if the absorption cost basis was applied