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Required information The Foundational 15 (Algo) (LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product
Required information The Foundational 15 (Algo) (LO6-1, LO6-2, LO6-3, LO6-4, LO6-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 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 48,000 units and sold 43,000 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 $ 27 $ 12 $ 3 $ 5 $ 864,000 $ 456,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 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. Foundational 6-2 (Algo) 2. What is the unit product cost under absorption costing? Unit product cost $ 62 Foundational 6-3 (Algo) 3. What is the company's total contribution margin under variable costing? Total contribution margin Foundational 6-4 (Algo) 4. What is the company's net operating income (loss) under variable costing? Foundational 6-5 (Algo) 5. What is the company's total gross margin under absorption costing? Total gross margin Foundational 6-6 (Algo) 6. What is the company's net operating income (loss) under absorption costing? Foundational 6-7 (Algo) 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operating Income (Losses) Variable costing net operating income (loss) Absorption costing net operating income (loss) Foundational 6-8 (Algo) a. What is the company's break-even point in unit sales? Break even point units b. Is it above or below the actual unit sales? O Above O Below
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