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Diego Company manufactures one product that is sold for $73 per unit in two geographic regions-the East and West regions. The following information pertains to
Diego Company manufactures one product that is sold for $73 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 56,000 units and sold 51,000 units. The company sold 38,000 units in the East region and 13,000 units in the West region. It determined that $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 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. Foundational 6-9 (Algo) 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? 10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 51,000 units? 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 51,000 units? 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. 15. Assume the West region invests $46,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign
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