Zee Corporation operated at 100% of capacity during its first month and incurred the following costs: Selling price is $800 per unit. Production costs (2,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Fixed factory overhead 100,000 $800,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If company produces and sells 2,000 units, the cost of goods sold reported under Variable Costing Income Statement would be

: a. $700,000 b. $800,000 c. $830,000 d. $980,000