Required information [The following information applies to the questions displayed below] 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 21 1e Variable selling and administrative Fixed costs per year: $1,860,800 S 557,0ee Fixed selling and administrative expense The company sold 36,000 units in the East region and 12.000 units in the West region. It determined that $270000 of its remaining $67000 is a common fixed expense. The company will continue to incur the total amount of it manufacturing overhead costs as long as it continues to produce any amount of its only and administrative expense is traceable to the West region, $220,000 is traceable to the East region, and the s fixed 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% n Year 2 Using the contribution appoach for analy ng segment profitably and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 27