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

Sales (95 units)$95,000

Production costs (100 units):Direct materials$40,000

Direct labor20,000

Variable factory overhead3,000

Fixed factory overhead7,000

70,000

Operating expenses:Variable operating expenses$ 8,000

Fixed operating expenses1,000

9,000

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

Group of answer choices

$28,500

$19,500

$16,000

$25,000