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