Content Area A business operated at 100% of capacity during its first month, with the following results: Line Item Description Amount Amount Sales (106 units) $519,400 Production costs (132 units): Direct materials $69,919 Direct labor 17,852 Variable factory overhead 31,240 Fixed factory overhead 29,753 Total production costs $148,764 Operating expenses: Variable operating expenses $5,529 Fixed operating expenses 4,302 Total operating expenses 9,831 The amount of gross profit that would be reported on the absorption costing income statement is a. $390,107 b. $394,409 c. $399,938 d. $519,268