1. If the sales volumes in the East and West regions had been reversed, what would be the companys overall break-even point in unit sales?

2. What would have been the companys variable costing net operating income (loss) if it had produced and sold 48,000 units?

What would have been the companys absorption costing net operating income (loss) if it had produced and sold 48,000 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 $66,000 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 5% in Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 2?

Assume the West region invests $43,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?

IThe following information applies to the questions displayed below. Diego Company manufactures one product that ls sold for $70 per unit In two geographic regions-the East and West regions. The following Information pertalns to the Company's first year of operations In which It produced 53,000 units and sold 48,000 units. Variable costs per unit Manufacturing Direct materials Direct labor 10 Variable manufacturing overhead Varlable selling and administrative Fixed costs per year: 1,060,000 Fixed manufacturIng overhead Fixed selling and adminlstrative expenses 557,000 The company sold 36,000 units in the East region and 12,000 units n the West region. It determined that $270,000 of Its fixed selling and administrative expenses Is traceable to the West reglon, $220,000 ls traceable to the E region, and the remalning $67,000 ls a common fixed cost. The company will Continue to Incur the total amount of Its fixed manufacturing overhead costs as long as It continues to produce any amount of its only product