If the contribution margin per unit is $500 and the contribution margin percentage is 25%, then the selling price will be ____________?
Correct answer: A. $2,000
- A. $2,000
- B. $5,250
- C. $4,280
- D. $3,860
Explanation
Contribution margin percentage equals contribution margin per unit divided by selling price, so selling price = $500 ÷ 25% = $2,000. Therefore, option a is correct.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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