A business operated at 100% of capacity during its first month, with the following results: Sales (98 units) $401,800 Production costs (123 units): Direct materials $54,515 Direct labor 13,919 Variable factory overhead 24,358 Fixed factory overhead 23,197 $115,989 Operating expenses: Variable operating expenses $5,074 Fixed operating expenses 3,769 8,843 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $304,312 Ob. $309,387 Oc. $401,677 Od. $300,543