SK Ltd. sells its product for $100 per unit. During 2021, it produced 80,000 units and sold 40,000 units (there was no beginning inventory). Costs per unit are: direct materials $15, direct labor $9, and variable overhead $3. Fixed costs are: $720,000 manufacturing overhead, and $90,000 selling and administrative expenses.

The manufacturing cost per unit under absorption costing is

Select one:

a.$36

b.$41

c.$37.125

d.$24