A business operated at 100% of capacity during its first month, with the following results: Sales (104 units) $520,000 Production costs (130 units): Direct materials $65,000 Direct labor 16,250 Variable factory overhead 29,250 Fixed factory overhead 26,000 136,500 Operating expenses: Variable operating expenses $5,740 Fixed operating expenses 3,360 9,100 The amount of operating income that would be reported on the variable costing income statement is a.$425,860 b.$510,900 c.$396,500 d.$519,870