Lucy Sportswear (LS) manufactures specialty t-shirts. It has the following cost structure for the fiscal year just ended: Product Costs $ Period Costs 550,000 Variable Costs 210,000 Fixed Costs $ {:[" Revenues for "],[" the fiscal year "],[" just ended "]:} 1,025,000 The amounts reflect operating at 70% of full capacity. In the upcoming fiscal year, Lucy anticipates an increase in demand and believes to meet it, must operate at 85% of full capacity. What will be Lucy's total operating costs if it operates at 85% of full capacity?

a) $738,214.29

b) $856,071.43

c) $750,000.00

d) $938,214.29

e) $810,750.00

f) None of the above