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

Sales (120 units)		$588,000
Production costs (150 units):
Direct materials	$79,454
Direct labor	20,286
Variable factory overhead	35,501
Fixed factory overhead	33,809	169,050
Operating expenses:
Variable operating expenses	$5,688
Fixed operating expenses	4,838	10,526

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

a.$447,072

b.$442,234

c.$452,761

d.$587,850