1. A business operated at 100% of capacity during its first month, with the following results:

   Sales (117 units)		$468,000
   Production costs (146 units):
   Direct materials	$63,130
   Direct labor	16,118
   Variable factory overhead	28,207
   Fixed factory overhead	26,865	134,320
   Operating expenses:
   Variable operating expenses	$5,643
   Fixed operating expenses	3,070	8,713

   What is the amount of the income from operations that would be reported on the absorption costing income statement?

   a.$351,646

   b.$467,854

   c.$376,246