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Diego Company manufactures one product that is sold for $75 per unit in two geographic regions the East and West regions. The following information
Diego Company manufactures one product that is sold for $75 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 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials used Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $25 $20 $2 $4 $644,000 $388,000 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and their remaining $38,000 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: Prepare a segmented income statement for each region and total for the company. Use the contribution format income statement. (Abbreviations are not allowed.)
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