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

De Anne Company Income Statement For the month ending August 31
Sales ($20 per unit)	$802,000
Variable expenses:
Variable cost of goods sold	521,300
Variable selling expense	80,200
Total variable expenses	601,500
Contribution margin	200,500
Fixed expenses:
Fixed manufacturing	142,880
Fixed selling and administrative	35,720
Total fixed expenses	178,600
Net operating income	$ 21,900

The company produced 35,720 units in August and the beginning inventory consisted of 8,340 units. Variable production costs per unit and total fixed costs have remained constant over the past several months.

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

$4,380 profit

$35,720 profit

$21,900 profit

$4,380 loss