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1 1 . What would have been the company s absorption costing net operating income ( loss ) if it had produced and sold 3
What would have been the companys absorption costing net operating income loss if it had produced and sold units? Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Diego is considering eliminating the West region because an internally generated report suggests the regions total gross margin in the first year of operations was $ less than its traceable fixed selling and administrative expenses. Diego believes that if it drops the West region, the East region's sales will grow by in Year Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year what would be the profit impact of dropping the West region in Year Assume the West region invests $ in a new advertising campaign in Year that increases its unit sales by If all else remains constant, what would be the profit impact of pursuing the advertising campaign?
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