Content Area A business operated at 100% of capacity during its first month, with the following results: Sales (96 units) $518,400 Production costs (120 units): Direct materials $70,049 Direct labor 17,885 Variable factory overhead 31,298 Fixed factory overhead 29,808 149,040 Operating expenses: Variable operating expenses $5,048 Fixed operating expenses 4,817 9,865 The amount of gross profit that would be reported on the absorption costing income statement is a. $518,280 b. $399,168 c. $389,303 d. $394,120