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regions. The Totuwing normation pertains to the company stirst year or operauons in when it provuceu 49,000 units and sold 44,000 units. Variable costs per

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regions. The Totuwing normation pertains to the company stirst year or operauons in when it provuceu 49,000 units and sold 44,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 28 14 4 6 $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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 a. What is the company's break-even point in unit seles? Broak oven point units b. Is it above or below the actual unit sales? Below O Above Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units. 6 Variable coste 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 expensie 28 14 4 6 $ $ $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit sales? Break even point units 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 (loss) if it had produced and sold 44,000 units? You do not need to perform any calculations to answer this question remaining manufacturing overhead costs as long as it continues to produce any amount of its only product. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 44,000 units? You not need to perform any calculations to answer this question. 4 6 Variable manufacturing overhead Variable selling and administrative Fixed costs per year. Pixed manufacturing overhead Fixed selling and administrative expense $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. Income Statement Total Company East West www.yyy regions. The following information pertains to the company's first year of operations in which it produced 49,000 units and sold 44,000 units Variable costs per uniti Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per yeart Fixed manufacturing overhead Fixed selling and administrative expense $ $ $ $ 28 14 4 6 $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. 14. Diego is considering ellminating the West region because an internally generated report suggests the region's total gross margin in the first year of operations was $14.000 less than its traceable fixed seling 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 in Year 2? Profit will by Required information [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units $ Variable costs per unit Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed conte per year i Tixed manufacturing overhead Fixed selling and administrative expense 28 14 4 6 $ 686,000 $ 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expense is traceable to the West region, $180,000 is traceable to the East region, and the remaining $100,000 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. 15. Assume the West region invests $39,000 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? Profe will by

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