s Hot Stuff began making hot and sour soup in August, 2012. The soup sells for $2 for alarge package. Variable production costs are $0.70 per package. Roberta's Hot Stuff incursmonthly fixed manufacturing overhead costs of $40,000 and fixed selling and administrative costof $8,000. On August 31, 2012 ending inventory was 10,000 soup packages. Assume Roberta'sHot Stuff produced 400,000 soup packages in September. Roberta's Hot Stuff sold 406,000 of the soup packages in September. Calculate the September net income using absorption costing.

A. $479,800

B. 479,200

C. 527,800

D. 487,200