Denton Company manufactures and sells a single product. Cost data for the product are given: Variable costs per unit: Direct materials $ 5 Direct labor 9 Variable manufacturing overhead 3 Variable selling and administrative 1 Total variable cost per unit $ 18 Fixed costs per month: Fixed manufacturing overhead $ 72,000 Fixed selling and administrative 172,000 Total fixed cost per month $ 244,000 The product sells for $52 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced Units Sold July 18,000 14,000 August 18,000 22,000 The companys Accounting Department has prepared the following absorption costing income statements for July and August: July August Sales $ 728,000 $ 1,144,000 Cost of goods sold 294,000 462,000 Gross margin 434,000 682,000 Selling and administrative expenses 186,000 194,000 Net operating income $ 248,000 $ 488,000 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.