Required information The Foundational 15 (Algo) [LO4-1, LO4-2, LO4-3, LO4-4, LO4-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 42,000 units and sold 37,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 21 $ 12 $3 $5 $ 840,000 $ 330,000 The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expense is traceable to the West region, $110,000 is traceable to the East region, and the remaining $60,000 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.

10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 37,000 units? 7. What is the difference between the variable costing and absorption costing net operating incomes (losses)? 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overali break even point in unit sales? Required: 1. What is the unit product cost under variable costing? a. What is the company's break-even point in unit sales? b. Is it above or below the actual unit sales? Below Above 3. What is the company's total contribution margin under variable costing? 2. What is the unit product cost under absorption costing? 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions 6. What is the company's net operating income (loss) under absorption costing? 12. If the company produces 5,000 fewer units than it seils in its second year of operations, will absorption costing ner operating income be higher of lower than vartable costing net operating income in Year 2 ? Higher Lower 11. What would have been the company's absorption costing net operating incorne (loss) if it had produced and soid 37000 units? 5. What is the company's total gross margin under absorption costing? 4. What is the company's net operating income (loss) under variable costing