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Management · Q268

Management Accounting

Graduate and Post Graduate · Management · question 268

Q268

If contribution margin percentage is 20% and selling price is 4000, then contribution margin per unit will be

A.
$200
B.
$400
C.
$600
D.
$800
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Contribution margin per unit = Selling price × Contribution margin percentage
= 800.