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Management · Q267

Management Accounting

Graduate and Post Graduate · Management · question 267

Q267

If contribution margin per unit is 500 and contribution margin percentage is 25%, then selling price will be

A.
$2,000
Answer
B.
$5,250
C.
$4,280
D.
$3,860

Answer: Option A

Solution

Answer: Option A
Solution:
Selling price = Contribution margin per unit ÷ Contribution margin percentage
= 2,000.
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