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

Sales (112 units)		$660,800
Production costs (140 units):
Direct materials	$89,291
Direct labor	22,798
Variable factory overhead	39,896
Fixed factory overhead	37,995	189,980
Operating expenses:
Variable operating expenses	$5,182
Fixed operating expenses	4,819	10,001

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

a.$660,660

b.$529,211

c.$498,816

d.$534,030