Surent Corporation Has the Following Information Available on Product K

Multiple Choice

Surent Corporation has the following information available on Product K: The company uses the absorption costing approach to cost-plus pricing described in the text and a 50% markup.Based on these data,the company's total selling and administrative expenses associated with Product K each year are:
$\begin{array}{llcc} \text {Number of units sold each year............. } &80,000 \\ \text {Unit product cost................................. } &\$25\\ \text { Investment in Product \( \mathrm{K} \) .................... } &\$400,000\\ \text { Required return on investment............ } &20\%\\\end{array}$

A) $80,000
B) $200,000
C) $920,000
D) $800,000