A business operated at 100% of capacity during its first month, with the following results: Sales (101 units) $444,400 Production costs (126 units): Direct materials $59,931 Direct labor 15,301 Variable factory overhead 26,778 Fixed factory overhead 25,502 $127,512 Operating expenses: Variable operating expenses $5,205 Fixed operating expenses 3,639 8,844 The amount of gross profit that would be reported on the absorption costing income statement is a. $342,188 b. $333,344 c. $444,274 d. $336,983