Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 12 Variable manufacturing overhead 4 Variable selling and administrative 1 Total variable cost per unit $ 22 Fixed costs per month: Fixed manufacturing overhead $ 105,000 Fixed selling and administrative 172,000 Total fixed cost per month $ 277,000 The product sells for $55 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 21,000 17,000 August 21,000 25,000 The companys Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 935,000 $ 1,375,000 Cost of goods sold 442,000 650,000 Gross margin 493,000 725,000 Selling and administrative expenses 189,000 197,000 Net operating income $ 304,000 $ 528,000 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.