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 43,000 units? 3. What would have been the companys absorption costing net operating income (loss) if it had produced and sold 43,000 units? 4. 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? Higher Lower?

[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 units Variable costs per unit: Manufacturing 27 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 12 5 $ 864,000 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $ 456,000 sold 33,000 units in the East region and The company $220,000 of its fixed selling and administrative expenses is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 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. 10,000 units in the West region. It determined that