A business operated at 100% of capacity during its first month, with the following results: Sales (115 units Production costs (144 units): Direct materials $77,832 Direct labor 19,872 Variable factory overhead 34,776 Fixed factory overhead 33,120 Operating expenses: Variable operating expenses Fixed operating expenses $6,200 3,318 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $442,750 Ob. $574,856 Oc. $436,550 Od. $433,232 A business operated at 100% of capacity during its first month, with the following results: Sales (115 units Production costs (144 units): Direct materials $77,832 Direct labor 19,872 Variable factory overhead 34,776 Fixed factory overhead 33,120 Operating expenses: Variable operating expenses Fixed operating expenses $6,200 3,318 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $442,750 Ob. $574,856 Oc. $436,550 Od. $433,232