Question: Elements Ltd is considering launching a new product. The following information has beengiven to you to estimate the target cost and actual costs: The firm has an order for 20,000 units at a price of $60 per unit Fixed costs are $240,000 for this number of units Labour time required to make one unit is 20 minutes at a cost of $18 per hour The require profit margin is 40% The material required per unit is 500 grams per unit at $30 a kg.

Question :EPU Ltd is considering designing a new product. The following information has been given: A firm order for 15,000 units at $60 per unit Fixed cost is estimated to be $165,000 Labour cost is $12 per unit The material required per unit is 200 grams at a cost of $80 per kg The required profit margin is 40%.Calculate the target cost per unit.