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

Sales (114 units)		$661,200
Production costs (143 units):
Direct materials	$89,658
Direct labor	22,891
Variable factory overhead	40,060
Fixed factory overhead	38,153	190,762
Operating expenses:
Variable operating expenses	$5,927
Fixed operating expenses	3,505	9,432

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

a.$499,692

b.$661,057

c.$503,197

d.$509,124