A business operated at 100% of capacity during its first month, with the following results: Sales (90 units) $90,000 Production costs (100 units): Direct materials $40,000 Direct labor 20,000 Variable factory overhead 2,000 Fixed factory overhead 7,000 69,000 Operating expenses: Variable operating expenses Fixed operating expenses $8,000 1,000 9,000 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $27,900 Ob. $21,000 Oc. $18,900 Od. $18,000