Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per unit Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 6 12 4 1 $ 23 $ 150,000 163,000 $ 313,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: July August Units Produced 30,000 30,000 Units Sold 26,000 34,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July $ 1,300,000 August $1,700,000 702,000 918,000 782,000 Sales Cost of goods sold Gross margin Selling and administrative expenses Net operating income 598,000 189,000 $ 409,000 197,000 $ 585,000