Hornet Products, Inc., summarizes the following data for the first year of operations Manufacturing overhead: Sales (# of units sold: 100,000 units) $7,000,000 Production costs (# of units produced: 102,250 units): Direct material.................... 1,100,000 Direct labor 707,500 1,260,000 1,022,500 560,000 640,000 Variable............. Fixed............... Operating expenses: Variable............. Fixed................. Under variable costing, what is Cost of Goods Sold of the Hornet's first year of operations? O $3,067,500 O $3,000,000 O $4,090,000 O $4,000,000