A business operated at 100% of capacity during its first month, with the following results: Sales (109 units) $512,300 Production costs (136 units): Direct materials $69,098 Direct labor 17,642 Variable factory overhead 30,873 Fixed factory overhead 29,403 147,016 Operating expenses: Variable operating expenses Fixed operating expenses $5,186 4,189 9,375 The amount of gross profit that would be reported on the absorption costing income statement is a. $394,471 b. $512,164 c. $385,096 d. $389,285