A business operated at 100% of capacity during its first month, with the following results: Sales (112 units) $560,000 Production costs (140 units): Direct materials $70,000 Direct labor 17,500 Variable factory overhead 31,500 Fixed factory overhead 28,000 147,000 Operating expenses: Variable operating expenses $5,540 Fixed operating expenses 3,360 8,900 The amount of operating income that would be reported on the variable costing income statement is Oa. $427,900 Ob. $551,100 Oc. $459,260 Od. $559,860