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

Answer:$3.125Step-by-step explanation:Selling Price = $2.50Unit Cost = $1.00Gross margin = (Unit cost/Selling price)*100= (1/2.5)*100Gross margin = 40%Unit cost increased by 0.25.New unit cost = $1.00 1+ $0.25 = $1.25Selling price =( Unit cost/Gross margin)*100Selling price =[ (1.25)/40]*100= 125/40Selling price = $3.125Increases the unit selling price to $3.125Hope this will helpful.Thank you.