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8 Required information The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $71 per unit in

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8 Required information The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $71 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 42,000 units and sold 37,000 units Pan 2013 00:57:34 Variable costa per esta Manufacturing Direct materials Direct Labor Variable manufacturing overbead Variable selling and strative Pixed costs per years Pixed manufacturing overhead Txelling and administrative exp $ 1 21 12 3 5 80,000 $ 370,900 The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expense is traceable to the West region, $110,000 s traceable to the East region, and the remaining $60,000 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. 15. Assume the West region invests $32,000 in a new advertising campaign in Year 2 that increases its unit sales by 2026. If else remains constant, what would be the profit impact of pursuing the advertising campaign? Profit wil Variable costs per units Manufacturing Direct materials Direct labor Variable manufacturing overboad Varkable selling and administrative Fixed costs per year Trixed manufacturing ovechend Fixed rolling and administrative expense 21 12 3 5 $ $140,000 $ 330,000 The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expense is traceable to the West region, $110,000 is traceable to the East region, and the remaining $60,000 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 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 5% in Year 2. Using the contribution approach for analyzing segment profitability and assuming all else remains constant in Year 2. what would be the profit impact of dropping the West region in Year 2? Profit will by

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