6 Homework 6 Help Save & Exit Submit Check my 13 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 West regions. The following information pertains to the company's first year of operations in which it produced 41000 units and sold 36,000 units. or 1s oosts per ctrP terial Variabl g overhead variable aelling and ainistrativo Pixed eosts per year s984,000 Fixed manofacturing overhead Fixed selling and adsinistrative expense 308,000 The company sold 26,000 units in the East region and 10,000 units in the West region. It determined that $150,000 of its flixed selling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 is a common fixed expense. The company will continue to incur the total amount of its fxed manufacturing overhead costs as long as it continues to produce anty amount of its only product 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West reg ons Total
@DiogoCompany Mntactm DomRegatrason ework Help Save&Exit Submit 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 West regions. The following information pertains to the company's first year of operations in which it produced 41,000 units and sold 36,000 units. Variable coats per unitr Variable manufaeturing overbead variable sel1ing and administrative Pixed manufacturing overhead rixed sei1ing and dainietrat ive expenco 309,00 rixed eosts per yeari 984,000 The company sold 26,000 units in the East region and 10,000 units in the West region. It determined that $150,000 of its fixed selling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 is a common fixed expense. The company will continue to incur the total amount of its fxed 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 $10,000 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 6% in Year 2. Using the contribution approach for analyzing segment profitablity and assuming all else remains constant in Year 2, what would be the proft impact of dropping the West region in Year 2?
