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

Sales (115 units)		$667,000
Production costs (144 units):
Direct materials	$90,285
Direct labor	23,052
Variable factory overhead	40,340
Fixed factory overhead	38,419	192,096
Operating expenses:
Variable operating expenses	$5,654
Fixed operating expenses	4,186	9,840

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

a.$503,750

b.$666,856

c.$507,936

d.$513,590