Wheel and Tire Manufacturing currently produces 600 tires per month. The following per unit data apply for sales to regular customers:

Direct materials$22

Direct manufacturing labor3

Variable manufacturing overhead6

Fixed manufacturing overhead10

Total manufacturing costs$41

The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires. What is the total cost of producing 2,000 tires?

a.$39,000

b.$78,000

c.$68,000

d.$64,000