A business operated at 100% of capacity during its first month, with the following results: Sales (103 units) Production costs (129 units): $515,000 Direct materials $69,725 Direct labor 17,802 Variable factory overhead 31,154 Fixed factory overhead 29,669 148,350. Operating expenses: Variable operating expenses Fixed operating expenses $5,855 3,253 9,108 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $514,871 Ob. $390,695 Oc. $396,551 Od. $387,442