A business operated at 100% of capacity during its first month, with the following results: Sales (109 units) $501,400 Production costs (136 units): Direct materials $67,627 Direct labor 17,267 Variable factory overhead 30,216 Fixed factory overhead 28,778 143,888 Operating expenses: Variable operating expenses $5,604 Fixed operating expenses 3,332 8,936 The amount of operating income that would be reported on the absorption costing income statement is Oa. $403,539 Ob. $501,264 Oc. $400,207 Od. $377,142