A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $416,000 Production costs (130 units): Direct materials $56,212 Direct labor 14,352 Variable factory overhead 25,116 Fixed factory overhead 23,920 119,600 Operating expenses: Variable operating expenses $6,233 Fixed operating expenses 3,248 9,481 The amount of gross profit that would be reported on the absorption costing income statement is a.$320,320 b.$310,839 c.$415,870 d.$314,087