Denton Company manufactures and sells a single product. Cost data for the product are given:

Variable costs per unit:
Direct materials			$	3
Direct labor				9
Variable manufacturing overhead				4
Variable selling and administrative				1
Total variable cost per unit			$	17
Fixed costs per month:
Fixed manufacturing overhead	$	108,000
Fixed selling and administrative		166,000
Total fixed cost per month	$	274,000

The product sells for $53 per unit. Production and sales data for July and August, the first two months of operations, follow:

	Units Produced	Units Sold
July	27,000	23,000
August	27,000	31,000

The companys Accounting Department has prepared the following absorption costing income statements for July and August:

	July			August
Sales	$	1,219,000		$	1,643,000
Cost of goods sold		460,000			620,000
Gross margin		759,000			1,023,000
Selling and administrative expenses		189,000			197,000
Net operating income	$	570,000		$	826,000

Prepare contribution format variable costing income statements for July and August.

Denton Company
Variable Costing Income Statement
	July	August
Net operating income (loss)