Question
[The following information applles to the questions displayed below.] Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-East
[The following information applles to the questions displayed below.] Diego Company manufactures one product that is sold for $70 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. 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 seling and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 is a common freed 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. a. What is the company's break-even point in unit sales? b. Is it above or below the actual unit sales? Below Above 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-East and West. The following information pertains to the company's first year of operations in which it produced 53,000 units and sold 48,000 units. The company sold 36,000 units in the East region and 12,000 units in the West reglon. 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 $67,000 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. 1. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 48,000 units
[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-East and West. 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: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 21 $ 10 $2 $4 Fixed manufacturing overhead. Fixed selling and administrative expense $ 1,060,000 $ 557,000 Fixed costs per year: 1 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 $67,000 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. a. What is the company's break-even point in unit sales? Break even point units b. Is it above or below the actual unit sales? Below Above
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StepbyStep Solution Computations Required 1 BreakEven Point in Unit Sales To calculate the breakeven point in unit sales we need to determine the tota...Get Instant Access to Expert-Tailored Solutions
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