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

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The Answer of 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

Simmons Corporation Estimated That the Following Costs and Activity Would