38. A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (17,700 units):

Direct materials $181,100

Direct labor 226,200

Variable factory overhead 241,200

Fixed factory overhead 95,400 $743,900

Operating expenses:

Variable operating expenses $131,800

Fixed operating expenses 48,300 $180,100

If 1,600 units remain unsold at the end of the month and sales total $1,011,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

a.$67,245

b.$83,525

c.$58,621

d.$145,596