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

Sales (118 units)		$495,600
Production costs (148 units):
Direct materials	$67,195
Direct labor	17,156
Variable factory overhead	30,023
Fixed factory overhead	28,594	142,968
Operating expenses:
Variable operating expenses	$5,989
Fixed operating expenses	4,163	10,152

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

a.$371,460

b.$495,452

c.$375,623

d.$381,612