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

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Required information The Foundational 15 (Algo) \{LO7-1, LO7-2, LO7-3, LO7-4, 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 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. The company sold 29,000 units in the East region and 10,000 units in the West region. It determined that $180,0000 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 overheod costs as long as it continues to produce any amount of its only product. Foundational 7.3 (Algo) 3. What is the company's total contribution margin under variable costing? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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 $90,000is 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 7.4 (Algo) 4. What is the company's net operating income (1055) under variable costing? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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. Foundational 7.5 (Algo) 5. What is the compary's total gross margin under absorption costing? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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. Foundational 7.6 (Algo) 6. What is the company's net operating income (loss) under absorption costing? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] [The following information applies to the questions displayed below.] Diego Company manufactures one product that is soid 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 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 traceoble to the East region, and the remaining $90,000 is a common fixed expense. The company wili continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to ptoduce any amount of its only product. Foundational 7-7 (Algo) 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] [The following information appiles 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 , 00O units and sold 39,000 units. 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 fived 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 manufocturing overheod costs as long as it continues to produce any amount of its only product. Foundational 7.8 (Algo) a. What is the company's break-even point in unit sales? b. is it above or beiow the actual unit sales? Below Above Required information The Foundational 15 (AlgO) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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 ond administrative expense is traceable to the West region, $130.000 is traceable to the East region, and the remaining $90,000 ts a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overheod costs as long os it continues to produce any amount of its only product. Foundational 7-9 (Algo) 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit cales? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. The company sold 29,000 units in the East region and 10,000 units in the West region. It determined thot $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. Foundational 7-10 (Algo) 10. What would have been the companys varioble 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. Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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. 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. Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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 overheod costs as long os it continues to produce any amount of its only product. Foundational 7-12 (Algo) 12. If the company produces 5,000 fewer units then it sells in its second yeor of operotions, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2 ? Lower Higher. Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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 overheod costs 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. Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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. 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 believes that if it drops the West region, the East region's sales will grow by 5% in Year 2. Using the contribution opproach for analyzing segment profitability and ossuming all else remains constant in Year 2, whot would be the profit impact of dropping the West region in Year 2? Required information The Foundational 15 (Algo) [LO7-1, LO7-2, LO7-3, LO7-4, 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 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. 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 os it continues to produce any amount of its only product. coundational 715 (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

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