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Management · Q249

Management Accounting

Graduate and Post Graduate · Management · question 249

Q249

If contribution margin per unit is 40 per unit and selling price is 200, then contribution margin percentage would be

A.
20.00%
Answer
B.
10.00%
C.
22.00%
D.
16.00%

Answer: Option A

Solution

Answer: Option A
Solution:
Contribution margin percentage = Contribution margin per unit÷ Selling price × 100
= 200 × 100 = 20.00%.