The Following Costs Have Been Estimated Based on Sales of 30,000

Multiple Choice

The following costs have been estimated based on sales of 30,000 units:
$\begin{array}{lcc}& \text {Total Annual }& \text { Percent That Is}\\& \text {Costs}& \text {Variable}\\ \text { Direct materials } & \$ 300,000 &100\%\\ \text { Direct labor } & 250,000&100\% \\\text { Manufacturing overhead } &250,000&100\%\\ \text { Selling and administrative}&150,000&25 \%\end{array}$
What selling price (rounded to two decimal places) will yield a contribution margin of 40%?

A) $59.38
B) $43.75
C) $39.58
D) $33.25