A business operated at 100% of capacity during its first month, with the following results: Sales (100 units) $510,000 Production costs (125 units): Direct materials $68,914 Direct labor 17,595 Variable factory overhead 30,791 Fixed factory overhead 29,325 146,625 Operating expenses: Variable operating expenses $6,073 Fixed operating expenses 4,975 11,048 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $509,875 b. $386,627 Oc. $392,700 Od. $381,652 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 29,250 Variable factory overhead Fixed factory overhead 26,000 136,500 Operating expenses: Variable operating expenses $6,190 Fixed operating expenses 4,420 10,610 The amount of contribution margin that would be reported on the variable costing income statement is Oa. $519,870 Ob. $509,390 Oc. $425,410 O d. $420,990