A business operated at 100% of capacity during its first month, with the following results: Sales (116 units) $475,600 Production costs (145 units): Direct materials $64,265 Direct labor 16,408 Variable factory overhead 28,714 Fixed factory overhead 27,348 136,735 Operating expenses: Variable operating expenses $5,208 Fixed operating expenses 3,162 8,370 The amount of operating income that would be reported on the absorption costing income statement is a. $379,720 b. $357,841 X c. $382,882 d. $475,455