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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

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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 the company's first year of operations in which it produced 44,000 units and sold 39,000 units. The company sold 29,000 unis in the East region and 10,000 units in the West region. It determined that $180,000 of its fixed selling and administrative expense is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overheod costs as long as it continues to produce any amount of its only product. Foundational 7-11 (Algo) 11. What would have been the company's absorption costing net operating inconk: (loss) if it had produced and sold 39,000 units? You do not need to perform any calculations to answer this question. Diego Company manufactures one product that is sold for $73 per unit in two geographic regions-the East and West regians. The following lifformation pertains to the company's fist year of operations in which it produced 44,000 units and sold 39000 units The company sold 29.000 units in the East region and 10,000 units in the West region, It determined that $180,000 of its fixed seling and administrative expense is traceablo to the West region, $130,000 is tracesble to the East region, and the temaining $90,000 is a common fived expense. The company will conthue to incur the total amount of its fuid manufacturing overhead cosis as long as is continues to produce amy amount of is only peoduct Foundational 7.12 (Algo) 12. It the company produces 5,000 tewer unts than at seils in is second year of operatons, well absorpton costing net operating income be higher or lower than variable costing net operating income in Year 2 ? Higher Lower

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