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Diego Company manufactures one product that is sold for $ 7 6 per unit in two geographic regions - the East and West regions: The
Diego Company manufactures one product that is sold for $ per unit in two geographic regionsthe East and West regions: The following information pertains to the company's first year of operations in which it produced units and sold units.
Variable costs per unit:
Manufacturing:
Direct fraterials : $
Direct labor $
Variable manufacturing overhead $
Variable selling and administrative $
Fixed costs per year:
Fixed manufacturing overhead $
Fixed selling and administrative expense $
The company sold units in the East region and units in the West region. It determined that $ of its fixed selling and administrative expense is traceable to the West region, $ is traceable to the East region, and the remaining $ 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.
oundational Algo
Required
What is the company's breakeven
point in unit sales?
If the sales volumes in the East and West regions had been reversed, what would be the company's overall breakeven point in unit sales?
What would have been the company's variable costing net operating income loss if it had produced and sold units? You do not need to perform any calculations to answer this question.
What would have been the company's absorption costing net operating income loss if it had produced and sold units?
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