Question

If the unit selling price is $2.50 and the unit cost is $1.00 what action is needed to maintain the gross margin percentage when unit cost increases $0.25

Answer 1

it must be increased by 0.63 cents  to $3.13

Answer 2

2.50 / 1.00 = 250% gross margin percentage

1.00 + 0.25 = 1.25

1.25 x 250% = 1.25 x 2.5 = 3.125

the unit selling price needs to be increased by 0.63 cents to $3.13