Required information The following information applies to the questions displayed below.l Diego Company manufactures one product that is sold for $70 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 53,000 units and sold 48,000 units. 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 $1,060,000 $ 557,000 The company sold 36,000 units in the East region and 12,000 units in the West region. It determined that $270,000 of its fixed selling and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the remaining $67,000 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 is traceable to the west reglur, $220,000 IS traceable to the East region, and the remaining $67,000 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. Answer is not complete. East West $ Income Statement Total Company Sales $3,360,000 Variable expenses 1,776,000 Contribution margin 1,584,000 Traceable fixed expenses 0 Region segment margin 1,584,000 Common fixed expenses not traceable to regions Net operating loss $1,584,000 $ 2,520,000 1,332,000 1,188,000 840,000 444,000 396,000 $1,188,000 $ 396,000 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 $66,000 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 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