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Management · Q245

Management Accounting

Graduate and Post Graduate · Management · question 245

Q245

If contribution margin per unit is 1000 and contribution margin percentage is 25%, then selling price would be

A.
$2,500
B.
$4,000
Answer
C.
$3,800
D.
None of the above

Answer: Option B

Solution

Answer: Option B
Solution:
Selling price = Contribution margin ÷ Contribution margin percentage
= 4,000.
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