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

Sales (106 units)		$519,400
Production costs (133 units):
Direct materials	$70,449
Direct labor	17,987
Variable factory overhead	31,477
Fixed factory overhead	29,978	149,891
Operating expenses:
Variable operating expenses	$6,139
Fixed operating expenses	3,211	9,350

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

a. $399,938

b. $519,267

c. $390,588

d. $393,799