Calculator A business operated at 100% of capacity during its first month, with the following results: $600,000 Sales (120 units) Production costs (150 units): Direct materials Direct labor Variable factory overhead Fixed factory overhead $75,000 18,750 33,750 30,000 157,500 Operating expenses: Variable operating expenses Fixed operating expenses $5,560 4,320 9,880 The amount of operating income that would be reported on the variable costing income statement is lun