A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $172,100 Direct labor 236,000 Variable factory overhead 258,900 Fixed factory overhead 97,700 $764,700 Operating expenses: Variable operating expenses $128,100 Fixed operating expenses 46,800 174,900 If 2,000 units remain unsold at the end of the month and sales total $1,141,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? a.$66,700 b.$268,100 c.$76,470 d.$277,600

A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $172,100 Direct labor 236,000 Variable factory overhead 258,900 Fixed factory overhead 97,700 $764,700 Operating expenses: Variable operating expenses $128,100 Fixed operating expenses 46,800 174,900 If 2,000 units remain unsold at the end of the month and sales total $1,141,000 for the month, what would be the amount of income from operations reported on the absorption costing income statement? Oa. $66,700 Ob. $268,100 Oc. $76,470 Od. $277,600