Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.

Fixed factory overhead cost$38,700

Fixed selling and administrative costs7,500

Variable direct materials cost per unit4.60

Variable direct labor cost per unit1.88

Variable factory overhead cost per unit1.13

Variable selling and administrative cost per unit4.50

The dollar amount of desired profit from the production and sale of the company's product is

a.$175,000

b.$73,500

c.$96,000

d.$67,200