Canada Manufacturing currently produces 1,000 units per month. The following data for 1,000 units is available for sales to retailers:

Direct materials $100

Direct manufacturing labor 20

Variable manufacturing overhead 40

Fixed manufacturing overhead 60

Total manufacturing costs $220

The plant has the capacity to produce a total of 3,000 units. Canada is considering expanding its production to 2,000 units. What is the total cost of producing 2,000 units?

Select one:

a. $380,000

b. None of the options

c. $480,000

d. $440,000

e. $500,000