Denton Company manufactures and sells a single product. Cost data for the product are given below: Variable costs per unit: $4 Direct materials Direct labor Variable manufacturing overhead Va ative 4 2 riable selling and administr Total variable costs per unit $21 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative $ 72,000 172,000 Total fixed cost per month $ 244,000 The product sells for $49 per unit. Production and sales data for July and August, the first two months of operations, are as follows: Units Produced 18,000 18,000 Units Sold 14,000 22,000 July August The company's Accounting Department has prepared absorption costing income statements for July and August as presented below: July 322,000 364,000 August Sales Cost of goods sold $ 686,000 $1,078,000 506,000 Gross margin Selling and administrative expenses 572,000 216,000 200,000 Net operating income $ 164,000 $ 356,000