Target costing

Middle first. Current cost = 4+12*0.25+2*M = 7+2M
Cost target = 10- (25/100 * 10) = 7.50

Above obtained from. Profit Margin % = ((Sale-cost)/Sale ) *100

7.50 = 7 + 2M
M=0.25

Other question:

Sales Price per Unit = £90
Profit Margin per unit = 30%
Maximum total costs per unit = £63
Fixed cost per unit = £46
Labour Cost per unit= £5
Maximum material cost per unit = £12
Target Cost per Kilogram = £48
Current Quoted = £60
Minimum discount = 20%

@Mannaesi The required amount per unit is 250 grams. So the cost per unit of £12 needs to be scaled up to by 1kg's worth. So 12*4 = £48