DeAnne Company produces a single product. The company's variable costing income statement for August appears below:

De Anne Company Income Statement For the month ending August 31
Sales ($18 per unit)	$745,200
Variable expenses:
Variable cost of goods sold	414,000
Variable selling expense	82,800
Total variable expenses	496,800
Contribution margin	248,400
Fixed expenses:
Fixed manufacturing	143,920
Fixed selling and administrative	71,960
Total fixed expenses	215,880
Net operating income	$ 32,520

The company produced 35,980 units in August and the beginning inventory consisted of 8,150 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

Under absorption costing, for the month ended August 31, the company would report a:

A. $71,960 profit

B. $32,520 profit

C. $10,840 loss

D. $10,840 profit