1 Partlofl c 10 points r\"\"\"\\ i 2 02:32:sz| \\ / Print Required information sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowing information pertains to the company's rst year of operations in which it produced 60,000 units and $ 1,260,000 $ 054,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its 'lixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. Required: 1. What is the unit product cost under variable costing? 20 Part 1 OHS - Print Required information [T he following information applies to the questions displayed below. ] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative S 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,680 Fixed selling and administrative expense $ 654,009 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 2. What is the unit product cost under absorption costing? er: my wot ac my wor Required information Part 3 of 15 [The for/owing information app/[e5 to the questions displayed below. ] - Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West 10 regions. The following information pertains to the company's first year of operations in which it produced 60,000 units and Wm; sold 57,000 units. / \\ Variable costs per unit: kg ozzuzzi/i Manufacturing: 7 Direct materials 35 2 Direct labor is 1 Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead 3 1,260,000 Fixed selling and administrative expense $ 654,000 Print The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 3. What is the company's total contribution margin under variable costing? 4o Part40f15 10 points \\ l/ 2 02:29- Print '\\ 55 i / Required information [The following information applies to the questions displayed below. ] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowing information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead 3 2 Variable selling and administrative s 3 Fixed costs per year: Fixed manufacturing overhead $ 1,269,000 Fixed selling and administrative expense $ 654,990 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 4. What is the company's net operating income (loss) under variabie costing? ::| Check my work 50 Part 50(15 10 points /7\\ i 8 nz:2s:sai \\ / Plint Required information [T he following information applies to the questions displayed below. ] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowing information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labor $ 12 Variable manufacturing overhead 3 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region. $290000 is traceable to the East region. and the remaining $24,000 is a common fixed expense. 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. 5. What is the company's total gross margin under absorption costing? :| 6o PartSOiiS 10 points i/ 2 02:29 \\ Print Required information [T he fol/owing information app/[es to the questions displayed be/OW] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowing information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor 3; 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead 3 1,269,999 Fixed selling and administrative expense 5 654,999 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region. $290000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 6. What is the company's net operating income (ioss) under absorption costing? ::| ec my war Part 7 of 15 10 points Print Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57.000 units. Variable costs per unit: Manufacturing: Direct materials $ 23 Direct labor $ 12 Variable manufacturing overhead s 2 Variable selling and administrative S 3 Fixed costs per year: Fixed manufacturing overhead $ 1,269,383 Fixed selling and administrative expense $ 654,680 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Variable costing net operating income (loss) Absorption costing net operating income (loss) 8o Part 8 OHS 10 points /7\\ i i i | \\8 02 28 01/ Print Required information sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowing information pertains to the company's rst year of operations in which it produced 60,000 units and $12 3 1,260,000 $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its xed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. a. What is the company's break-even point in unit sales? 90 Part90f15 10 points (2.. \\ Prim Required information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowmg information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials is 28 Direct labor 3) 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead 3 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 9. lfth sales? e sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit Check my work 10 Part 10 of 15 10 points fri \\ l 2 02:21:22 i \\,7 / Print Required information [The fol/owing information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials as 28 Direct labor as 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,099 Fixed selling and administrative expense 3 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region. $290000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. The company will continue to incur the total amount of its 'iixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 57,000 units? You do not need to perform any calculations to answer this question. ::| Check my work 11 Part 11 oi i5 10 points '\\ Prim l/ 2 oz: Required information [T he following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The followmg information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57.000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor is 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 leed costs per year: Fixed manufacturing overhead $ 1,260,900 Fixed selling and administrative expense 3; 654,009 The company sold 42,000 units in the East region and 15.000 units in the West region. It determined that $340,000 of its 'lixed selling and administrative expense is traceable to the West region. $290000 is traceable to the East region. and the remaining $24000 is a common fixed expense. The company will continue to incur the total amount of its 'lixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 11. What would have been the company's absorption costing net operating income (loss) it it had produced and sold 57,000 units? You do not need to perform any calculations to answer this question. ::| Check my work 12 Part 12 ONE 10 points /77\\ | 2 02:: Si \\ 1 Print Required information [T he following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The foilowmg information pertains to the company's first year of operations in which it produced 60,000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials 35 28 Direct labor is 12 variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,280,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15.000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region. $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 12. If the company produces 3,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2? 0 Lower 0 Higher 13 Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 60,000 units and sold 57.000 units. Variable costs per unit: PB!" 13 0'15 Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 10 Variable selling and administrative $ 3 poms Fixed costs per year: Fixed manufacturing overhead S 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the Print remaining $24,000 is a common fixed expense. 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. 13. Prepare a contribution format segmented income statement that includes a Total column and columns forthe East and West regions. Check my work 14 Part 14 OHS 10 points /7 K2 02:: Prim Check my work , Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's rst year of operations in which it produced 60.000 units and sold 57,000 units. Variable costs per unit: Manufacturing: Direct materials $ 28 Direct labor 3 12 Variable manufacturing overhead 3 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,260,000 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15.000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. 14. Diego is considering eliminating the West region because an internally generated report suggests the region's total gross margin in the first year of operations was $115,000 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? -:-:| 15 Part 15 ONE 10 points (8 02:2 Print Diego Company manufactures one product that is sold for $78 per unit in two geographic regionsthe East and West regions. The following information pertains to the company's first year of operations in Wthh it produced 60,000 units and sold 57,000 units. Variable costs per unih Manufacturing: Direct materials $ 28 Direct labor $ 12 Variable manufacturing overhead $ 2 Variable selling and administrative $ 3 Fixed costs per year: Fixed manufacturing overhead $ 1,280,089 Fixed selling and administrative expense $ 654,000 The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. The company will continue to incur the total amount of its xed manufacturing overhead costs as long as it continues to produce any amount of its only product. 15. Assume the West region invests $50.000 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 advertismg campaign?