Lincoln, Inc., which uses a volume-based cost system, produces cat condos that sell for $170 each. Direct materials cost $23 per unit, and direct labor costs $11 per unit. Manufacturing overhead is applied at a rate of 250% of direct labor cost. Nonmanufacturing costs are $36 per unit. What is the gross profit margin for the cat condos?

a. 42.4%

b. 57.7%

c. 40.2%

d. 63.5%