Mercer corporation estimates that an investment of $650,000 would be necessary to produce and sell 60,000 units of a new product each year. other costs associated with the new product would be: variable costs (per unit): materials, labor, and overhead$ 12 selling and administrative$ 3 fixed costs per year: manufacturing overhead$ 360,000 selling and administrative$ 300,000 the company requires a 25% return on the investment in all products. the company uses the absorption costing approach costing to pricing as described in the text. the selling price would be closest to:
a.$28.71
b.$26.50
c.$22.00
d.$32.67