A business operated at 100% of capacity during its first month, with the following results: Sales (102 units) Production costs (127 units): $581,400 $78,254 Direct materials Direct labor Variable factory overhead Fixed factory overhead 19,980 34,964 33,299 166,497 Operating expenses: Variable operating expenses $5,949 3,943 Fixed operating expenses 9,892 The amount of gross profit that would be reported on the absorption costing income statement is Oa. $447,678 Ob. $581,273 Oc. $437,786 Od. $441,729