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

The following costs have been estimated based on sales of 30,000 units:
$$\begin{array} { | l | r | r | } \hline & \begin{array} { r } \text { Total Annual } \\\text { Costs }\end{array} & \begin{array} { r } \text { Percent That Is } \\\text { Variable }\end{array} \\\hline \text { Direct materials } & \$ 300,000 & 100 \% \\\hline \text { Direct labor } & 250,000 & 100 \\\hline \begin{array} { l } \text { Manufacturing } \\\text { overhead }\end{array} & 250,000 & 50 \\\hline \begin{array} { l } \text { Selling and } \\\text { administrative }\end{array} & 150,000 & 25 \\\hline\end{array}$$ What selling price will yield a contribution margin of 40%?

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