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

Sales (111 units)		$666,000
Production costs (139 units):
Direct materials	$90,155
Direct labor	23,018
Variable factory overhead	40,282
Fixed factory overhead	38,365	191,820
Operating expenses:
Variable operating expenses	$5,540
Fixed operating expenses	4,370	9,910

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

a.$512,819

b.$507,280

c.$665,861

d.$502,910