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

Sales (118 units)		$531,000
Production costs (148 units):
Direct materials	$71,995
Direct labor	18,382
Variable factory overhead	32,168
Fixed factory overhead	30,635	153,180
Operating expenses:
Variable operating expenses	$5,975
Fixed operating expenses	4,971	10,946

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

a.$530,852

b.$397,925

c.$422,349

d.$427,320