# Practice assessment 2 - Task 8 (b) (ii)

snowy_autumn
WiltshireRegistered Posts:

**10**
Hi All

If total cost per unit is £12.75 and selling price is £17 and the question is, how many units need to be sold to make a profit of 25%.

The answer is 25,217, but can anyone explain how they came to 25,217 units needing to be sold to get a 25% profit margin?

I see that they need to make £428,689 (£17 x 25,217 units) to cover costs and profit.

If 25% of this is profit (£107,172) and the remaining 75% is costs (£321,517 £12.75 x 25,217 units)

But how did they do the calculation to work this out?

If total cost per unit is £12.75 and selling price is £17 and the question is, how many units need to be sold to make a profit of 25%.

The answer is 25,217, but can anyone explain how they came to 25,217 units needing to be sold to get a 25% profit margin?

I see that they need to make £428,689 (£17 x 25,217 units) to cover costs and profit.

If 25% of this is profit (£107,172) and the remaining 75% is costs (£321,517 £12.75 x 25,217 units)

But how did they do the calculation to work this out?

0

## Comments

337ACCA in progress

F4- Passed Aug 2020

F5- Planned for Dec 2020

F6- Passed Sep 2020

F7

F8

F9

10They have only given me the below, but the 25,217 x £12.75 total cost per unit covers the fixed costs and variable costs.

10must have been asleep! :-)

337Glad you found where it all fits together.

ACCA in progress

F4- Passed Aug 2020

F5- Planned for Dec 2020

F6- Passed Sep 2020

F7

F8

F9