If contribution margin per unit is 500 and contribution margin percentage...

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

A. $2,000

B. $5,250

C. $4,280

D. $3,860

Answer: Option A

Selling price = Contribution margin per unit ÷ Contribution margin percentage
= $500 ÷ 25% = $2,000.

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