A business operated at 100% of capacity during its first month, with the following results:

Sales (97 units) $543,200

Production costs (121 units):

Direct materials$73,249

Direct labor18,702

Variable factory overhead32,728

Fixed factory overhead31,169155,848

Operating expenses:

Variable operating expenses$5,326

Fixed operating expenses3,7069,032

The amount of gross profit that would be reported on the absorption costing income statement is

a.$543,079

b.$409,232

c.$412,938

d.$418,264