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Required information The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $72 per unit in two

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Required information The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $72 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 43,000 units and sold 38,000 units Variable costs per unit: Manufacturing: Direct materials 14 Direct labor Variable manufacturing overhead Variable selling and administrative 5 Pixed costs per year: s 774,000 Fixed manufacturing overhead Fixed selling and administrative expense 346,000 The company sold 28,000 units in the East region and 10,000 units in the West re that $170,000 of its fixed selling and administrative expense is traceable to the West region, $120,000 is traceable to the East region, and the remaining $56,000 is a common f gion. It determined xed expense. The company manufacturing overhead costs as long as it continues will continue to incur the total amount of its fixed to produce any amount of its only product repare a contribution format segmented income statement that includes a Total column and columns for the East and West regions 13. P Income Statement Total Company East West 14. Diego is considering eliminating the West region because an internally generated report suggests the region's total margin in the first year of operations was $20,000 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? will increase rint 15 Assume the West region invests $33,000 in a new advertising campaign in Year 2 that increases its unit sales by If all else remains constant, what would be the profit impact of pursuing the advertising rences campaign

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