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

Sales (120 units)		$480,000
Production costs (150 units):
Direct materials	$64,860
Direct labor	16,560
Variable factory overhead	28,980
Fixed factory overhead	27,600	138,000
Operating expenses:
Variable operating expenses	$6,152
Fixed operating expenses	3,056	9,208

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

a.$369,600

b.$479,850

c.$360,392

d.$363,448