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

Production costs $(20,500$ units$)$:

Line Item Description Amount Amount

Direct materials $$176,800$

Direct labor $230,900$

Variable factory overhead $253,300$

Fixed factory overhead $103,300$

Total production costs $$764,300$

Operating expenses:

Variable operating expenses $$134,100$

Fixed operating expenses $41,300175,400$

Total operating expenses $175,400$

If $2,000$ units remain unsold at the end of the month and sales total $$1,113,000$ for the month, the amount of operating income reported on the absorption costing income statement would be

a$.$ $$247,920$

b$.$ $$237,788$

c$.$ $$74,566$

d$.$ $$64,488$