Blue Lights Co. uses the total cost concept of product pricing. Given below is cost information for the production and sale of 50,000 units of its sole product. Blue Lights desires a profit equal to a 12.6% rate of return on invested assets of $1,000,000

factory overhead cost $90,000

fixed selling and administrative costs 55,000

variable direct material cost per units 6.00

variable direct labor cost per unit 9.65

variable factory overhead cost per unit 3.50

variable selling and administrative cost per unit 1.20

Based on the information provided, the dollar amount of desired profit from the production and sale of the companys production is

a) $96,000 b) $126,000 c) $67,200 d) $237,700