9. Dammam Shoe Manufacturing is considering the idea of manufacturing a fun, low-cost, energy shoe and selling it under its own name. It has estimated the following information based upon a budgeted volume of 100,000 units.

Per Unit Total

Direct materials (leather and rubber) $8.40

Direct labor $1.90

Variable manufacturing overhead $0.80

Fixed manufacturing overhead $940,000

Variable selling and administrative expenses $0.90

Fixed selling and administrative expenses $320,000

Assume Dammam Show Manufacturing uses cost-plus pricing to set its selling price. Management also directs that the target price be set to provide a 25% return on investment (ROI) on invested assets of $4,200,000.

What are the target selling price and markup percentage on this new shoe?

A) $30.75 and 29.91%

B) $35.10 and 35.90%

C) $35.10 and 42.68%

D) 30.75 and 35.10%