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Management · Q250

Management Accounting

Graduate and Post Graduate · Management · question 250

Q250

If contribution margin per unit is 800 and selling price is 20000, then contribution margin percentage will be

A.
17.00%
B.
14.00%
C.
4.00%
Answer
D.
25.00%

Answer: Option C

Solution

Answer: Option C
Solution:
Contribution margin percentage = Contribution margin per unit÷ Selling price × 100
= 20000 × 100 = 4.00%.