A business operated at 100% of capacity during its first month, with the following results: Sales (97 units) $485,000 Production costs (121 units): Direct materials $65,400 Direct labor 16,698 Variable factory overhead 29,222 Fixed factory overhead 27,830 139,150 Operating expenses: Variable operating expenses $5,863 Fixed operating expenses 4,397 10,260 The amount of operating income that would be reported on the absorption costing income statement is a. $385,500 Oa. Ob. $363,190 Oc. $484,879 Od. $389,897