Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 10 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 19 Fixed costs per month: Fixed manufacturing overhead $ 120,000 Fixed selling and administrative 163,000 Total fixed cost per month $ 283,000 The product sells for $51 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 24,000 20,000 August 24,000 28,000 The companys Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 1,020,000 $ 1,428,000 Cost of goods sold 460,000 644,000 Gross margin 560,000 784,000 Selling and administrative expenses 183,000 191,000 Net operating income $ 377,000 $ 593,000 Required: 1. Determine the unit product cost under: a. Absorption costing. b. Variable costing. 2. Prepare contribution format variable costing income statements for July and August. 3. Reconcile the variable costing and absorption costing net operating incomes.