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ch4 Required information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $77 per unit in

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Required information [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-East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units The compary sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280.000 is traceable to the East region, and the remaining $52.000 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. Required: 1. What is the unit product cost under variable costing? Required information [The following information applies to the questions displdyed beiow] Diego Company manufactures one product that is sold for $77 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 59,000 units and sold 54,000 units The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52.000is 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. 2. What is the unit product cost under absorption costing? Required informotion [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-East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 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. 3. What is the company's total contribution margin under variable costing? Required information [The following infommation applies to the questions displayed below] Diego Company manufactures one product that is sold for $77 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 59.000 units and sold 54.000 units. The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52000 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. 4. What is the company's net operating income (loss) under variable costing? Required information [The following information applies fo the questions displayed below] Diego Company manufactures one product that is sold for $77 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 59.000 units and sold 54.000 units. The company sold 41.000 units in the East region and 13,000 units in the West region. It determined that 5330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52000 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. 5. What is the company's total gross margin under absorption costing? Required information [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-East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and soid 54,000 units. The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceabie to the West region, $280,000 is traceable to the Fast region, and the remaining $52,000 is a common fored 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 6. What is the company's net operating income (loss) under absorption costing? Required information [The following information applies to the questions displayed below] Diego Company manufactures one product that is soid for $77 per unit in two geographic regions-East and West. The following information pertains to the compary's first year of operations in which it produced 59.000 units and sold 54.000 units. The compary sold 41,000 units in the East region and 13,000 units in the West region. It determined that 5330,000 of its fored selling and administrative expense is traceable to the West region, $280.000 is traceable to the East region, and the remaining $52,000 is a common foxed 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. 7. What is the difference between the variable costing and absorption costing net operating incomes (losses)? Required information [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for \$7I 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 59,000 units and sold 54,000 units The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed seling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The company will continue to incur the total amount of its foxed 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 $77 per unit in two geographic regions - East and West. The foilowing information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units The company sold 41,000 units in the East region and 13,000 units in the West region it determined that $330.000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common foxed 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 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in uni sales? Required information [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 - East and West. The following information pertains to the company's fitst year of operations in which it produced 59.000 units and sold 54,000 units. The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its foxed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The company will continue to incur the total amount of its foxed manufacturing overhead costs as long as it continues to produce any amount of its only product. 10. What would have been the comparyys variable costing net operating income (loss) if it had produced and sold 54,000 units? Required information [The following information applies fo the questions displayed below] Diego Compary manulactures one product that is sold for $77 per unit in fwo geographic regions-East and West. The. following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units. The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that 5330,000 of its fixed selling and administrative expense is traceable to the West region, $280.000 is traceable to the East region, and the remaining $52,000 is a common fored 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. 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 54,000 units? Required information [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 - East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units The company sold 41,000 units in the East region and 13.000 units in the West region. It determined that $330.000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52.000 is a common fored 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 12. If 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 Required information [The following information applies to the questions displayed below] Diego Gompany manufactures one product that is sold for $77 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 59,000 units arid sold 54,000 units The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280.000 is traceable to the East region, and the remaining $52.000 is a common fixed expense. The company will continue to incur the total amount of its foxed manufacturing overhead costs as long as tt continues to produce any 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 regions. [The following information applies to the questions displayed below]] Diego Company manufactures one product that is sold for $7/ 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 59,000 units and sold 54,000 units The compary sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330.000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52.000 is a common fired expense. The company will continue to incur the fotal amount of its fored 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 the first year of operations was $122,000 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 ? Required informotion (The following informatbon applies to the questions displayed below] Diego Company manufactures one product that is sold for 571 per unit in two geographic regions-East and West. The: following itformation pertains to the compary's first year of operations in which t produced 590000 units and sold 54.000 units The compary sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330.000 of its. fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 is a common fixed expense. The compary will continue to incur the total amount of its foxed manufacturing overhead costs as long as it continues to produce any amount of its only product. 5. Assume the West region invests $49.000 in a new advertising campaign in Year 2 that increases its unit sales by 20% if all else emains constant, what would be the proft impact of pursuing the advertising campaign

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