Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regionsthe East and West regions. The following information penains to the company's first year of operations in which it produced 44,000 units end sold 39,000 units. Variable costs per unit: Manu f a cru ring : Direct materials Direct Labor Variable manufacturing overhead Variable selling and administrative Fixed ccsts per year: Fixed manufacturing overhead Fixed selling and administrative expense ; 748,000 ; 400,000 The company sold 29,000 units in the East region and 10,000 units in the West region. It determined that $180,000 of its fixed selling and administrative expense is traceable to the West region, S130,OOO is traceable to the East region, and the remaining S90,OOO 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 in the first year of operations was $30,000 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 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? Answer is complete but not entirely correct. increase 149,400