A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (18,600 units): Direct materials Direct labor $184,700 223,600 Variable factory overhead 261,000 Fixed factory overhead 93,200 $762,500 Operating expenses: Variable operating expenses $124,300 Fixed operating expenses 47,100 171,400 171,400 If 1,800 units remain unsold at the end of the month and sales total $1,087,000 for the month, the amount of operating income reported on the absorption costing income statement would be a. $64,771 b. $217,871 c. $226,968 d. $73,790