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A business operated at 100% of capacity during its first month, with the following results: Sales (97 units) $543,200 Production costs (121 units): Direct materials

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

Sales (97 units) $543,200
Production costs (121 units):
Direct materials $73,249
Direct labor 18,702
Variable factory overhead 32,728
Fixed factory overhead 31,169 155,848
Operating expenses:
Variable operating expenses $5,101
Fixed operating expenses 4,390 9,491

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

a. $543,079

b. $418,264

c. $413,163

d. $408,773

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