Question 2 Question of The most important step in the development of prescription drugs is obtaining approval for the drug to be prescribed by physicians nationwide in the us.. the food and Drug Administration requires pharmaceutical companies to perform statistical testing on a number of factors related to safety and effectiveness of drugs Recently, a pharmaceutical company submitted an analysis of the possible side effects , dizziness. stomach upset) for an arthritis drug Based on the analysis. Occas concluded that the drug was generally safe for use in the general population of arthritis patients. This conclusion is an example of inferential statistics. cost/benefit analysis. descriptive statistics. SWOT (strengths, weaknesses. opportunities, threats) analysis. cost-volume-profit analysis. Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 840,000 $ 330,000 The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expense is traceable to the West region, $110.000 is traceable to the East region, and the remaining $60,000 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. 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. East West Income Statement Total Company Sales $ 2,627,000 Variable expenses Contribution margin 2 627,000 Traceable fixed expenses Region segment margin 2,627,000 Common foxed expenses not traceable to regions Net operating loss $ 2.627.000 0 110,000 (110.000) 0 160,000 (160,000) S $