4. A new business operated at 100% of capacity during its first month and incurred the following costs: Selling price is $800 per unit. Production costs (2,000 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $180,000 240,000 280,000 100,000 $800,000 Operating expenses: Variable operating expenses Fixed operating expenses $130,000 50,000 180,000 If 500 units are unsold during the month, what is the amount of gross profit reported under Absorption Costing? a $200,000 b. $800,000 c. $400,000 d. $600,000 $675,000