A business operated at 100% of capacity during its first month, with the following results: Sales (160 units): $160,000 Production costs (200 units): Direct materials $100,000 Direct labor 20,000 Variable factory overhead 10,000 Fixed factory overhead 4,000 $134,000 Operating expenses: Variable operating expenses Fixed operating expenses $12,000 2,000 14,000 The amount of manufacturing margin that would be reported on the variable costing income statement is Oa. $56,000 Ob. $38,000 Oc. $44,000 Od. $30,000