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

Sales (106 units)		$498,200
Production costs (132 units):
Direct materials	$67,065
Direct labor	17,123
Variable factory overhead	29,965
Fixed factory overhead	28,539	142,692
Operating expenses:
Variable operating expenses	$6,403
Fixed operating expenses	4,854	11,257

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

a.$395,275

b.$400,129

c.$372,357

d.$498,068