A. $2,500
B. $4,000
C. $3,800
D. $3,800
✅ The correct answer is option B.
Selling price = Contribution margin ÷ Contribution margin percentage
= $1000 ÷ 25% = $4,000.
Selling price = Contribution margin ÷ Contribution margin percentage
= $1000 ÷ 25% = $4,000.