Miami, Inc. manufactured 250,000 units of its single product in 2019, its first year of operation. Variable manufacturing cost was $10 per unit produced. Variable operating (nonmanufacturing) cost was $2 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 200,000 units of product at $20.

What is this years cost of goods sold using variable costing?

a) $2,500,000

b) $2,600,000

c) $2,000,000

d) $3,000,000