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hello sir.
when calculating target cost in example 2.Can I find Target cost by another method?
for example, 1) $5m divided by 40000= $125 investment per unit
2) 125 multiplied by 30%= $37.50 profit per unit
3)(Sp – profit)=67.50-37.50=$30 target cost per unitI do actually say in the lecture that it is irrelevant how you go about calculating the target cost (provided, of course, you get the correct answer 🙂 )
(I do hope that you are watching the lectures and not using the notes on their own. It is in the lectures that I explain and expand on the notes – they are only lecture notes.
If you are not watching the lectures for any reason then you must buy a Study Text from one of the ACCA approved publishers and study from that.)
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