$1.$ What is the unit product cost under variable costing?

$2.$ What is the unit product cost under absorption costing?

$3.$ What is the company's total contribution margin under variable costing?

$4.$ What is the company's net operating income under variable costing?

$5.$ What is the company's total gross margin under absorption costing?

$6.$ What is the company's net operating income under absorption costing?

$7.$ What is the amount of the difference between the variable costing and absorption costing net operating incomes? What is the cause of this difference?

$8.$ What is the company's break$-$even point in unit sales? Is it above or below the actual unit sales? Compare the break$-$even point in unit sales to your answer for question $6$ and comment.

$9.$ If the sales volumes in the East and West regions had been reversed, what would be the company's overall break$-$even point in unit sales?

$10.$ What would have been the company's variable costing net operating income if it had produced and sold $35,000$ units? You do not need to perform any calculations to answer this question.

$11.$ What would have been the company's absorption costing net operating income if it had produced and sold $35,000$ units? You do not need to perform any calculations to answer this question.

$12.$ If the company produces $5,000$ 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 $2?$ Why? No calculations are necessary.

$13.$ Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.

$14.$ 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 $$50,000$ 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 $2?$

$15.$ assume the west region invests $$30,000$ 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?