If contribution margin per unit is 1000 and contribution margin percentage...

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

A. $2,500

B. $4,000

C. $3,800

D. None of the above

Answer: Option B

Selling price = Contribution margin ÷ Contribution margin percentage
= $1000 ÷ 25% = $4,000.

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