A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) Production costs (120 units): $480,000 Direct materials $60,000 Direct labor Variable factory overhead Fixed factory overhead 15,000 27,000 24,000 126,000 Operating expenses: Variable operating expenses Fixed operating expenses $5,850 4,480 10,330 The amount of operating income that would be reported on the variable costing income statement is Oa. $479,880 Ob. $364,070 Oc. $392.550 Od. $469,670