Target costing

Hi, I require help with a target costing question from Open Tuition course notes booklet (page 11, Example 1, Question A) I don't understand how the target cost is £7.00/unit, and the solutions do not explain this answer clearly. But anyway here is the question... ********************************************************************************* - Company plans to sell a new product; selling price is £10.50/unit; expect to sell 2,000 units in first year, and 12,000 units in each of year 2 to 5. - The company wishes to achieve a mark up of 50% on cost. - Estimated lifetime costs are: manufacturing costs at £6/unit; design and development costs of £60,000; end of life costs of £30,000. > Required: Calculate the target cost of the product. ********************************************************************************* Any help will be great, thanks