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:
$\begin{array}{lr}\text { Number of units sold annually ............................ } & 80,000 \\\text { Required investment............................... } & \$ 900,000 \\\text { Unit product cost........................... } & \$ 35\\\text { Selling and administrative expenses................... } & \$ 600,000\end{array}$

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