Required information [The followng information apples to the questions displayed below] Diego Company manufactures one product that is soid for $79 per unit in two geographic regors-the East and West regions. The following information pentains to the companys s first year of operations in which it produced 50.000 units and sold 45.000 units. The company sold 35,000 units in the Eost region and 10,000 units in the West regon in detenmined that 5240000 of its foud selting and administrative experse is traceable to the West fogron, $190000 is traceabie to the East region, and the remaining $86.000 is a comunon foed expense. The company will cortinue to incur the total amourt of ast fised manufacturing overhead costs as long as it continues lo peoduce any amourt of its only product. 14. Diego is considering elimngting the West tegion because an internally generaned repont sugpests the twgionis total gross inargin the firs year of operations was 580000 less than its troceable foued selling and sdrmintrative expenters. Diegp belesves that if at drop Foundational 15 (continived)