The Sloan Corporation Must Invest $120,000 to Produce and Market

The Sloan Corporation must invest $120,000 to produce and market 16,000 units of Product X each year.The company uses the absorption costing approach to cost-plus pricing described in the text to set prices for its products.Other cost information regarding Product X is as follows: If Sloan Corporation requires a 15% return on investment,then the markup percentage on absorption cost for Product X (rounded to the nearest percent) would be:
$\begin{array}{c}\begin{array}{lll}\\ \text {Direct materials....................................................}\\ \text {Direct labor...........................................................}\\ \text {Variable manufacturing overhead..........................}\\ \text {Fixed manufacturing overhead...............................}\\ \text {Variable selling and administrative expenses..........}\\ \text {Fixed selling and administrative expenses..............}\end{array}\begin{array}{rr}\text { Per Unit } & \text { Per Year } \\\$ 7 & \\\$ 5 & \\\$ 4 & \\& \$ 80,000 \\\$ 3 & \\& \$ 72,000 \end{array}\end{array}$

A) 41%
B) 16%
C) 29%
D) 22%