If the unit selling price is $2.50 unit costs $1.00 what is the margin percentage when the unit costs increased & .025

$3.125

Step-by-step explanation:

Selling Price = $2.50

Unit Cost = $1.00

Gross margin = (Unit cost/Selling price)*100

= (1/2.5)*100

Gross margin = 40%

Unit cost increased by 0.25.

New unit cost = $1.00 1+ $0.25 = $1.25

Selling price =( Unit cost/Gross margin)*100

Selling price =[ (1.25)/40]*100

= 125/40

Selling price = $3.125

Increases the unit selling price to $3.125

Hope this will helpful.

Thank you.

The price is 3.13

In order to find this you must first calculate out the current gross margin percentage. You can find this using the equation below. 

Gross Margin = cost /price

 Gross Margin = 1/2.5

As

40% = Gross Margin

Now we need to use the same equation with a new cost to find price. 

Cost / Price = Gross Margin

1.25 / Price = 40%

1.25/.40 = Price

3.13 = Price

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