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 $ 21 Fixed costs per month: Fixed manufacturing overhead Fixed 3elling and administrative Total fixed cost per month $144,000 169,000 313,000 The product sells for $47 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 24,000 August 24,000 28,000 Units Sold 20,000 July 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 Selling and administrative expenses Net operating income $ 940,000 1,316, 000 672,000 644,000 253,000 $ 231,000391,000 480,000 460,00 229,000