The vanilla Latte is one of Starbucks best-selling coffee drinks. Use the following information to conduct a cost analysis of Starbucks' Vanilla Lattes. Which one of the following equations would be used to calculate the RATE OF RETURN PRICING model using the TOTAL COST METHOD of Starbucks Vanilla Lattes?

a.

20 + ((0.35 x 120 000)/8100)

b.

(R15 /(1-35%))

c.

15 + ((0.35 x 120 000)/8100)

d.

(R15 + (35% of R20))