The Marietta Company has fixed costs of $75,000 and variable costs are 75% of the selling price. To realize operating income of $10,000 from sales of 80,000 units, the selling price per unit ________. (Round the answer to the nearest cent.)

A.

must be $1.42

B.

must be $4.25

C.

must be $3.75

D.

must be $1.06