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

Sales (117 units)		$526,500
Production costs (146 units):
Direct materials	$71,022
Direct labor	18,133
Variable factory overhead	31,733
Fixed factory overhead	30,222	151,110
Operating expenses:
Variable operating expenses	$6,267
Fixed operating expenses	3,062	9,329

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

a. $399,138

b. $396,076

c. $405,405

d. $526,354