Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260.000 is traceable to the East region, and the remaining $75,000 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 4. What is the company's net operating income (loss) under variable costing? Diego Company manufactures one product that is sold for $75 per unit in two geographic regions--ast and West. The following information pertains to the company's first year of operations in which it produced 57,000 units and soid 52,000 units. The company sold 36.000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed seling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 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 ary amount of its only product. 5. What is the company's total gross margin under absorption costing? Diego Company manufactures one product that is sold for $75 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 57.000 units and sold 52.000 units. The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region. $260.000 is traceable to the East region, and the remaining $75.000 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. 6. What is the company's net operating income (loss) under absorption costing? Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units: The company sold 36.000 units in the East region and 16.000 units in the West region. It determined that $310.000 of its fuxed selling and administrative expense is traceable to the West region, $260.000 is traceable to the East region, and the remaining $75,000 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. 7. What is the difference between the variable costing and absorption costing net operating incomes (losses)? Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52.000 units. The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75.000 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. a. What is the company's break-even point in unit sales? b. Is it above or below the actual unit sales? Below Above Diego Company manufactures one product that is sold for $75 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 57.000 units and sold 52.000 units. The company sold 36,000 units in the East region and 16,000 units in the West region it determined that $310.000 of its fixed selling and adminstrative expense is traceable to the West region. $260.000 is traceable to the East region, and the remaining $75,000is 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 9. If the sales volumes in the East and West regions had been reversed, what would be the compory's overall break-even point in unit sales? Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310.000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common foxed expense. The company will continue to incur the total amount of its fixed manulacturing overhead costs as long as it continues to produce any amount of its only product 10. What would have been the company's vanable costing net operating income (loss) if at had produced and sold 52,000 units? Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 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. 1. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 52,000 units? Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. The company sold 36.000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260.000 is traceable to the East region, and the remaining $75.000 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. 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? Lower Higher Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units The company sold 36,000 units in the East region and 16,000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 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. 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Diego Company manufactures one product that is sold for $75 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 57,000 units and sold 52,000 units. The company sold 36.000 units in the East region and 16,000 units in the West region. It determined that $310.000 of its fixed selling and administrative expense is traceable to the West region, $260.000 is traceable to the East region, and the remaining $75.000 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. 14. Diego is considering eliminating the West region because an internally generated report suggests the region's total gross margin i the first year of operations was $22.000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drop 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 ? Diego Company manufactures one product that is sold for $75 per unit in two geographic regions- East and West. The following information pertains to the comparty's first year of operations in which it produced 57,000 units and 50 ld 52,000 units. The company sold 36.000 units in the East region and 16.000 units in the West region. It determined that $370.000 of its fixsd selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000is a common fixed expense. The company will continue to incur the total amount of its foxed manufacturing oveihead costs as long as it conitinues to produce any amount of its only product. 15. Assume the West region invests $47,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, whot would be the profit impoct of pursuing the advertising campaign