A business operated at 100% of capacity during its first month, with the following results: $636,000 Sales (120 units) Production costs (150 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $85,940 21,942 38,399 36,569 182,850 Operating expenses: Variable operating expenses $5,118 Fixed operating expenses 3,274 8,392 The amount of operating income that would be reported on the absorption costing income statement is a. $481,329 b. $510,583 c. $513,857 d. $635,850