A business operated at 100% of capacity during its first month, with the following results: Sales (102 units) $510,000 Production costs (127 units): Direct materials $68,644 Direct labor 17,526 Variable factory overhead 30,671 Fixed factory overhead 29,209 146,050 Operating expenses: Variable operating expenses $5,593 Fixed operating expenses 3,498 9,091 The amount of gross profit that would be reported on the absorption costing income statement is a.$392,701 b.$383,609 c.$387,107 d.$509,873