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Diego Company manufactures one product that is sold for $ per unit in two geographic regionsthe East and West
regions. The following information pertains to the company's first year of operations in which it produced units and
sold units.
Variable costs per unit:
Manufacturing:
Direct ma'terials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
The company sold units in the East region and units in the West region. It determined that $ of its
fixed selling and administrative expense is traceable to the West region, $ is traceable to the East region, and the
remaining $ is a common flxed 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.
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Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West
regions.
Answer is not complete.
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