The unit rate per munchkin is $0.22.
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What is Division?</h3>
Division is one of the four fundamental arithmetic operations, which tells us how the numbers are combined to form a new one.
The cost of 25 munchkins cost $5.46, therefore, the unit rate of each munchkin can be written as,

Hence, the unit rate per munchkin is $0.22.
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The second option is correct, I,e what you've chosen
You first divide the number by 100 and then multiply it by the percentage that you are given