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

Sales (90 units)		$90,000
Production costs (100 units):
Direct materials	$40,000
Direct labor	20,000
Variable factory overhead	2,000
Fixed factory overhead	7,000	69,000
Operating expenses:
Variable operating expenses	$ 8,000
Fixed operating expenses	1,000	9,000

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

a.$21,000

b.$27,900

c.$18,000

d.$18,900