SKM Innovations, Inc., anticipates producing 40,000 units and incurring the following manufacturing costs for the coming year: raw material, $35 per unit; direct labor, $50 per unit; manufacturing overhead, $1,200,000 + $40 per unit. Using absorption costing, the unit cost for the coming year will be:_______.
a. $85
b. $125
c. $90
d. $155