A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (17,700 units): Direct materials $176,000 Direct labor 224,200 Variable factory overhead 254,300 Fixed factory overhead 104,100 $758,600 Operating expenses: Variable operating expenses $122,000 Fixed operating expenses 42,700 164,700 If 2,000 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a. $85,718 b. $104,328 c. $87,740 d. $73,960