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

Sales (100 units)		$570,000
Production costs (125 units):
Direct materials	$77,021
Direct labor	19,665
Variable factory overhead	34,414
Fixed factory overhead	32,775	163,875
Operating expenses:
Variable operating expenses	$6,292
Fixed operating expenses	4,756	11,048

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

a.$427,852

b.$432,608

c.$569,875

d.$438,900