14 O Required information The following information applies to the questions displayed below Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-the East and Part 14 of 15 0.5 points West regions. The following information pertains 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 21 10 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Print Fixed manufacturing overhead Fixed selling and administrative expense $ 557,88e The company sold 36,000 units in the East region and 12,000 units in the West region It determined that $270,000 of its fixed selling and administrative expense is traceable to the West region, $220.000 is traceable to the East region, and the remaining $67000 is a common fixed expense. The company wll continue to incur References of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product 14. Diego the first the West region, and assuming all else remai is considering eliminating the West region because an internally generated report suggests the region's total gross margin in ear of operations was $66,000 less than its traceable fixed selling and administrative expenses Diego believes that if it drops the East region's sales will grow by 5% in Year 2, Using the contribution approach for analyzing segment profitability ins constant in Year 2, what would be the profit impact of dropping the West region in Year 2