Question
Diego Company manufactures one product that is sold for $77 per unit in two geographic regionsthe East and West regions. The following information pertains to
Diego Company manufactures one product that is sold for $77 per unit in two geographic regionsthe East and West regions. The following information pertains to the companys first year of operations in which it produced 48,000 units and sold 43,000 units.
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DO ALL PROBLEMS SHOWN ABOVE FOR THUMBS UP!!!DO ALL PROBLEMS SHOWN ABOVE FOR THUMBS UP!!!DO ALL PROBLEMS SHOWN ABOVE FOR THUMBS UP!!!DO ALL PROBLEMS SHOWN ABOVE FOR THUMBS UP!!!
Diego Company manufactures one product that is sold for $77 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 48,000 units and sold 43,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead 27 12 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense 456, 000 $864,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 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. 5. What is the company's total gross margin under absorption costing? Total gross margin 6. What is the company's net operating income (loss) under absorption costing? 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 unit sales? Break even point units 10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 43,000 units? You do not need to perform any calculations to answer thisStep by Step Solution
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