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

Sales (101 units)		$5,757
Production costs (126 units):
Direct materials	$770
Direct labor	197
Variable factory overhead	344
Fixed factory overhead	327	1,638
Operating expenses:
Variable operating expenses	$544
Fixed operating expenses	444	988

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

Select the correct answer.

A.

$3,900

B. $4,444

C.

$3,456

D.

$5,631