A business operated at 100% of capacity during its first month, with the following results: Sales (109 units) $490,500 Production costs (136 units): Direct materials $66,157 Direct labor 16,891 Variable factory overhead 29,560 Fixed factory overhead 28,152 140,760 Operating expenses: Variable operating expenses Fixed operating expenses $6,323 4,467 10,790 The amount of operating income that would be reported on the absorption costing income statement is a. $393,925 Ob. $490,364 Oc. $366,895 Od. $389,458