A business operated at 100% of capacity during its first month, with the following results:

Sales (96 units) $480,000 Production costs (120 units):

Direct materials $60,000

Direct labor 15,000

Variable factory overhead 27,000

Fixed factory overhead 24,000 126,000

Operating expenses:

Variable operating expenses $5,150

Fixed operating expenses 4,320 9,470

What is the amount of the contribution margin that would be reported on the variable costing income statement?

a. $393,250 b. $479,880 c. $470,530 d. $388,930