Given the following information:

Gross sales	$900,000
Items purchased from out of state vendors	$15,000
Items purchased under certificate of resale but used	$3,000
Food sales included in gross sales	$90,000
Sales to federal government included in gross	$20,000
Sales to non-profit organizations included in gross	$8,000
Sales to governments outside of Tennessee included in gross	$6,000
Local tax rate	Knox County
Amount subject to single article tax	$6,900

What is the base to which the local option tax (Knox County) is applied?

$800,000

$806,00

$883,100

$890,000