Diego Company manufactures one product that is sold for $81 per unit in two geographic regions-the East and West regions. The following information pertains to the comapny's first year of operations in which it produced 52,00 unit and sold 47,000 units.

Variable Cost per unit:

Manufacturing:

Direct material $20

Direct labor $20

Variable manufacturing overhead $4

Fixed Costs per year:

Fixed manufacturing overhead. $936,000

Fixed selling and administrative expense $552,000

The company sold 35,000 units in the East region and 12,000 units in the West region. It determined that $260,000 of its fixed selling and administrative expense is traceable to the West region, $210,000 is traceable to the East region, and the remaining $82,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continue to produce ay amount of its only product.

Question 6: What is the company's net operating income(loss) under absorption costing?

Question 7: What is the amount of the difference between the variable costing and absorption costing net operating incomes(losses)?

Variable costing net operating income(loss)	?
Add: Fixed manufacturing overhead cost deferred in inventory under absorption costing	?
Absorption costing net operating income (loss)	?

Question 8: What is the company's break-even point in unit sales?

Question 9: If the sales volumes in the East and West regions has been reversed, what would be the company's overall break-even point in unit sales?