Total Target Costs
ggp25
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.
Many thanks in advance
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.
Many thanks in advance
0
Comments
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If you are doing l3, not sure if you are, you do need to go this far in depth. Just remember the formulas.0
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Nope, sorry bro. Didn’t do L4.0
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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.1 -
Yes, this solution is very helpful. My ACCA advanced taxation instructor also helped me solve a similar question using this method.0
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