- The price at which product will be sold is £30 - Orders for 20000 units - Fixed costs are £180000 - Labour rate is £15 per hour - Required profit margin is 40% - Material requirement is 250 g per unit - Material cost is £16 per kg

Use this table to work out the target labour time per unit (minutes):

Sales price per unit: Profit margin: Total costs: Fixed cost per unit: Material cost per unit: Max labour cost per unit:

Target labour time per unit (minutes):

I can work out sales price per unit, fixed cost per unit and material cost per unit correctly but I can't see how to find the labour cost if we don't have the number of hours and why is the profit margin 12 if it's already given as 40%?