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

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! Required information The Foundational 15 (L07-1, L07-2, L07-3, L07-4, L07-5) (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--the East and West regions. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units Variable costs per unitt Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable onling and administrative Fixed costs per years Fixed manufacturing overbead Fixed selling and administrative expense 5 5 . 22 12 3 5 5.864.000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 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 7-13 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions 5 Variable selling and administrative Fixed costs per year. Fixed manufacturing overhead Fixed selling and administrative expense $ 864.000 $ 586,000 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 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 7-13 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions East West Income Statement Total Company Sales Variable expenses Contribution margin 0 Tracmabile fixed expenses Region segment margin 0 $ Common foxed expenses not traceable to regions Net operating loss $ 0 0 0 0 $ 0

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