Simmons Corporation Estimated That the Following Costs and Activity Would

Multiple Choice

Simmons Corporation estimated that the following costs and activity would be associated with Product T: If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 20% ROI, the selling price for Product T would be:

A) $37.25
B) $38.75
C) $42.00
D) $44.75