# Total Target Costs

Registered Posts: 7 New contributor 🐸
Hi,

Is anyone able to confirm how to answer the below question (Part . Increased selling price per unit and Variable costs per unit but unsure on the other parts.

• Registered Posts: 478 Dedicated contributor 🦉
If you are doing l3, not sure if you are, you do need to go this far in depth. Just remember the formulas.
• Registered Posts: 7 New contributor 🐸
@anony123

Its from level 4 - Applied management Accounting.

Are you able to help?
• Registered Posts: 478 Dedicated contributor 🦉
Nope, sorry bro. Didn’t do L4.
• Registered Posts: 2 New contributor 🐸
Hello,

From my understanding, there has been an increase in selling price of £2 per unit which makes now the selling price per unit £22 compared to £20 before.

Total cost = Fixed cost + Variable cost => (270,000+450,000)/45,000units = £16/unit

Profit/unit= Selling cost/unit - Total cost/unit => 22-16= £6/unit

Hope that helps.
• Registered Posts: 14 New contributor 🐸
Yes, this solution is very helpful. My ACCA advanced taxation instructor also helped me solve a similar question using this method.