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1. What is the unit product cost under variable costing? 2. What is the unit product cost under absorption costing? 3. What is the companys

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1.

What is the unit product cost under variable costing?

2.

What is the unit product cost under absorption costing?

3. What is the companys total contribution margin under variable costing?

4.What is the companys net operating income (loss) under variable costing?

5.What is the companys total gross margin under absorption costing?

The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $74 per unlt In two geographlc reglons-the East and West regions. The following information pertains to the company's first year of operations in which it produced 45,000 units and sold 40,000 units. Varlable costs per unit: Manufacturing: 24 18 3 5 Direct materials Varlable manufacturing overhead Varlable selling and administrative Flxed costs per year: $ 585,000o Flxed manufacturing overhead Fixed selling and administrative expenses 423,000 The company sold 30,000 units in the East region and 10,000 units in the West region. It determined that 190,000 of its fixed selling and administrative expenses is traceable to the West region, $140,000 Is traceable to the East reglon, and the remalning $93,000 is 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

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