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Diego Company manufactures one product that is sold for $80 per unit in two geographic regionsthe East and West regions. The following information pertains to

Diego Company manufactures one product that is sold for $80 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 40,000 units and sold 35,000 units.

Variable costs per unit:

Manufacturing:

Direct materials $24

Direct labor $14

Variable manufacturing overhead $2

Variable selling and administrative $4

Fixed costs per year:

Fixed manufacturing overhead $800,000

Fixed selling and administrative expenses $496,000

The company sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its fixed selling and administrative expenses is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 is a common fixed cost. 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.

10. What would have been the company's variable costing net operating income if it had produced and sold 35,000 units? You do not need to perform any calculations to answer this question.

11. What would have been the company's absorption costing net operating income if it had produced and sold 35,000 units? You do not need to perform any calculations to answer this question.

14. Diego is considering eliminating the west region because an internally generated report suggests the region's total gross margin in the first year of operations was $50000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drops 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 for year 2?

15. Assume the west region invests $30000 in a new advertising campaign in year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign?

I dont just want the answer, I need it broken down please.

variable costing Abosorption costing

10/11 Sales

variable expenses:

variable cost of goods sold

variable selling and admin.

Contribution margin

Fixed expenses:

Fixed manufacturing overhead

Fixed selling and administrative

Net operating gain (loss)

Thank you

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