A business operated at 100% of capacity during its first month and incurred the following costs:

Production costs (17,900 units):

Direct materials $179,700

Direct labor 232,600

Variable factory overhead 252,900

Fixed factory overhead 102,200

Operating expenses:

Variable operating expenses $133,800

Fixed operating expenses $45,500

If 2,000 units remain unsold at the end of the month and sales total $1,018,000 for the month, what would be the amount of income from operations reported on the variable costing income statement?

a.$145,656

b.$105,777

c.$85,743

d.$74,324