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

Sales (110 units)		$517,000
Production costs (137 units):
Direct materials	$69,606
Direct labor	17,772
Variable factory overhead	31,100
Fixed factory overhead	29,619	148,097
Operating expenses:
Variable operating expenses	$6,202
Fixed operating expenses	3,708	9,910

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

a. $391,888

b. $516,863

c. $388,180

d. $398,090