Minden Corporation Estimates That the Following Costs and Activity Would

Minden Corporation estimates that the following costs and activity would be associated with the manufacture and sale of product A: $\begin{array}{lr}\text { Number of units sold annually}&80,000 \\\text {Required investment. }&\$ 400,000 \\\text { Unit product cost.}&\$ 30 \\\text {Selling and administrative expenses }&\$ 300,000\end{array}$ If the company uses the absorption costing approach to cost-plus pricing described in the text and desires a 25% rate of return on investment (ROI) , the required markup on absorption cost for Product A would be closest to:

A) 12%
B) 15%
C) 17%
D) 25%