Question
7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? . a. What is the companys
7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?
. a. What is the companys break-even point in unit sales?
b. 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?
c.What would have been the companys variable costing net operating income (loss) if it had produced and sold 57,000 units? You do not need to perform any calculations to answer this question.
d.What would have been the companys absorption costing net operating income (loss) if it had produced and sold 57,000 units? You do not need to perform any calculations to answer this question.
Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $78 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 60,000 units and sold 57,000 units. The company sold 42,000 units in the East region and 15,000 units in the West region. It determined that $340,000 of its fixed selling and administrative expense is traceable to the West region, $290,000 is traceable to the East region, and the remaining $24,000 is a common fixed expense. 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. \begin{tabular}{|l|} \hline Difference of Variable Costing and Absorption Costing Net Operating Income (Losses) \\ \hline Variable costing net operating income (loss) \\ \hline Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing \\ \hline Absorption costing net operating income (loss) \\ \hline \end{tabular}Step by Step Solution
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