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 s 19 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month s135,000 172,000 S 307,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 27,000 Units Sold 23,000 31,000 July August 27,000 The company's Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales Cost of goods sold Gross margin $1,196,000 $1,612,000 651,000 961,000 483,000 713,000