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NEED AN EXPLAINATION ON HOW TO SOLVE, THANK YOU! Diego Company manufactures one product that is Sola Tor $80 per unit In two geographic regionsthe

image text in transcribed NEED AN EXPLAINATION ON HOW TO SOLVE, THANK YOU!

Diego Company manufactures one product that is Sola Tor $80 per unit In two geographic regionsthe 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. - 24 14 2 Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense AN $800,000 $ 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 expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $96,000 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. What is the amount of the difference between the variable costing and absorption ting net operating incomes (losses)? (Enter any losses or deductions as a negative ue.) Difference of Variable Costing and Absorption Costing Net Operating Income (Losses) iable costing net operating income (loss) $ 800,000 PI sorption costing net operating income (loss) This is a numeric cell, so please enter numbers only

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