Question 3: A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (5,000 units): Direct materials $70,000 Direct labor 20,000 Variable factory overhead 10,000 Fixed factory overhead 2.000 $102,000 Operating expenses: Variable operating expenses $17.000 Fixed operating expenses 1,000 18,000 1.000 units remain unsold at the end of the month and sales total $150,000 for the month. Calculate the amount of income from operations: a) Under the absorption costing income statement b) Under the variable costing income statement