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! Required Information The Foundational 15 (Algo) (L07-1, L07-2, L07-3, L07-4, LO7-5) [The following information applies to the questions displayed below.) Diego Company manufactures one

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! Required Information The Foundational 15 (Algo) (L07-1, L07-2, L07-3, L07-4, LO7-5) [The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $73 per unit in two geographie regions--the East and West regions. The following information pertains to the company's first year of operations in which it produced 44,000 units and sold 39,000 units. Variable costs per units Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Texo coats Do years xed manufacturing overhead Fixed selling and adeinitative oxponce 16 02 740.000 400.000 The company sold 29,000 units in the East region and 10,000 units in the West region, it determined that $180,000 of its Tad selling and administrative expense is traceable to the West region, $120,000 traceable to the East region, and the remaining 590,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead coats as long as it continues to produce any amount of its only product Foundational 7-13 (Algo) 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions Income Statement Total Company East We 0 0 Foundational 7-14 (Algo) 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 $30,000 less than its traceable fixed selling and administrative expenses. Diego belleves 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? Prowa by remaining $90,000 is a common fixed expense. The company will continue to incur the total amount of its foed manufacturing overhead costs as long as it continues to produce any amount of its only product Foundational 7-15 (Algo) 15. Assume the West region invests $34,000 in a new advertising campaign in Year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign? Prots will

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