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A business operated at 100% of capacity during its first month, with the following results:
| Sales (114 units) | | $661,200 |
| Production costs (143 units): | |
| Direct materials | $89,658 | |
| Direct labor | 22,891 | |
| Variable factory overhead | 40,060 | |
| Fixed factory overhead | 38,153 | 190,762 |
| |
| Operating expenses: | |
| Variable operating expenses | $5,927 | |
| Fixed operating expenses | 3,505 | 9,432 |
The amount of gross profit that would be reported on the absorption costing income statement is
a.$499,692
b.$661,057
c.$503,197
d.$509,124
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