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

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Required Information The Foundational 15 (Algo) (L07-1, LO7-2, L07-3, L07-4, L07-5) [The following information applles to the questions displayed below) Diego Company manufactures one product that is sold for $73 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 44,000 units and sold 39,000 units Variable conta per unit Manufacturing Direet materials $ 23 Direct labor $ 16 Variable manufacturing overhead 32 Variable selling and administrative 94 Fixed conto per year Tixed manufacturing overhead $70,000 Tixed selling and administrative spenne $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 fixed selling and administrative expense is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed 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 SA ce dry manufacturing overhead costs as long as it continues to Foundational 7-9 (Algo) 9. If the sales volumes in the East and West reglons had been reversed, what would be the company's overall break even point in unit sales? Broak even point units Foundational 7-10 (Algo) 10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 39,000 units? You do not need to perform any calculations to answer this question Foundational 7-11 (Algo) 11. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 39,000 units? You do not need to perform any calculations to answer this question ence Foundational 7-12 (Algo) 12. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating Income be higher or lower than variable costing net operating Income In Year 2? Lower Higher

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