Raymond Company estimates that an investment of $800,000 would be necessary to produce and sell 40,000 units of Product S each year. Costs associated with the new product would be: $30 Variable costs (per unit): Materials, Labour, and Manufacturing Overhead Selling and Administrative Fixed Cost per Year: Manufacturing Overhead Selling and Administrative $5 $300,000 $240,000 The company requires a 20% return on the investment in all products. The company uses the absorption costing approach to pricing. (Appendix 12A) What is the target selling price based on the absorption costing approach? $48.38. $51.38. $52.50. $56.25