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Examveda

If selling price is $5000, contribution margin per unit is $1000, then contribution margin percentage will be

A. 12.00%

B. 20.00%

C. 5.00%

D. 15.00%

Answer: Option B

Solution(By Examveda Team)

Contribution margin percentage = Contribution margin per unit ÷ selling price × 100
= $1000 ÷ $5000 × 100 = 20.00%

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