Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Total variable cost per uni $ 19 Fixed costs per month: Fixed manufacturing overhead Fixed selling and administrative Total fixed cost per month $ 84,000 175,000 $ 259,000 The product sells for $50 per unit. Production and sales data for July and August, the first two months of operations, follow: Units Produced 21,000 21,000 Units Sold 17,000 25,000 July August 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 $850,000 1,250,000 550,000 700,000 192,000 200,000 $ 284,000 500,000 374,000 476,000 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