Bubble plc manufactures ring binders. A customer has ordered a batch of 300 binders. The following data illustrate the cost for a typical batch of 100 binders:

Variable materials 30

Wages (paid on a per binder basis) 10

Machine set up (fixedper batch) 3

Design and artwork (fixedper batch) 15

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Bubble plc absorbs production overhead at a rate of 20% of variable wages cost. A further 5% is added to the total production cost of each batch to allow for selling, distribution and administration overhead.

Bubble plc requires a profit margin of 25% of selling price.

The selling price for a batch of 300 binders should be:

a) 189.00

b) 193.20

c) 201.60

d) 252.00