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 Fixed operating expenses $6,360 3,130 9,490 The amount of operating income that would be reported on the variable costing income statement is a. $470,510 b. $392,040 c. $364,910 d. $479,880