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 the unit cost increases $0.25?

To maintain the gross margin percentage when the unit cost increases from $1.00 to $1.25, the unit selling price must also be adjusted. The new selling price can be calculated to ensure the gross margin percentage remains the same. Specifically, if the original gross margin percentage is maintained, the new selling price would need to be set at approximately $2.75 to keep the same margin percentage.