A business operated at 100% of capacity during its first month, with the following results: $530,400 Sales (102 units) Production costs (128 units): Direct materials Direct labor $71,951 18,371 Variable factory overhead 32,148 Fixed factory overhead 30,618 153,088 Operating expenses: Variable operating expenses Fixed operating expenses $5,045 4,442 9,487 The amount of operating income that would be reported on the absorption costing income statement is a. $398,921 b. $427,762 C. $530,272 d. $423,320