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Examveda

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

A. 20.00%

B. 10.00%

C. 22.00%

D. 16.00%

Answer: Option A

Solution(By Examveda Team)

Contribution margin percentage = Contribution margin per unit÷ Selling price × 100
= $40 ÷ $200 × 100 = 20.00%.

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