The Moore Division of Block C Enterprises manufactures and sells specialty semiconductors. Moore sells 1350 of one of these specialized semiconductors each month at a price of $1200 each. Variable costs amount to $1,000,000, and fixed costs are $400,000. Currently Moore has a defect rate of 6 percent (which are chips returned by customers, scrapped, or replaced). Note that the variable costs include the cost of producing the defective chips. Calculate the hidden cost associated with producing this semiconductor.

**please explain how this was calculated.

Options:

	$50402
	$60542
	$70385
	$80533
	$90358
	$100406
	$110122
	$120083