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 regions$-$East and West. The

following information pertains to the company's first year of operations in which it produced $44,000$ units and sold $39,000$

units.

Variable costs per unit:

Manufacturing:

Direct materials $$23$

Direct labor $ $$16$

Variable manufacturing overhead $$2$

Variable selling and administrative $$4$

Fixed costs per year:

Fixed manufacturing overhead $$748,000$

Fixed selling and administrative expense $$400,000$

The company sold $29,000$ units in the East region and $10,000$ units in the West region. It determined $$180,000$ of its fixed

selling and administrative expense is traceable to the West region, $$130,000$ is traceable to the East region, and the

remaining $$90,000$ 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.

$1.$ What is the unit product cost under variable costing?

$2.$ What is the unit product cost under absorption costing?

$3.$ What is the company$$s total contribution margin under variable costing?

$4.$ What is the company$$s net operating income $($loss$)$ under variable costing?

$5.$ What is the company$$s total gross margin under absorption costing?

$6.$ What is the company$$s net operating income $($loss$)$ under absorption costing?

$7.$ What is the difference between the variable costing and absorption costing net operating incomes $($losses$)?$

Note: Enter any losses or deductions as a negative value.

$10.$ What would have been the company$$s variable costing net operating income $($loss$)$ if it had produced and sold $39,000$ units?

$11.$ What would have been the company$$s absorption costing net operating income $($loss$)$ if it had produced and sold $39,000$ units?

$12.$ If the company produces $5,000$ fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year $2?$

$13.$ Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.