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Required information The Foundational 15 [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

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Required information The Foundational 15 [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 regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead 27 10 2 Variable selling and administrative Fixed costs per year: $1,298,000 Fixed manufacturing overhead Fixed selling and administrative expense 662,000 The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 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 5. What is the company's total gross margin under absorption costing? Total gross margin 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 sales? Break even point units 10. What would have been the company's variable costing net operating income (loss) if it had produced and sold 54,000 units? You do not need to perform any calculations to answer this question. 15. Assume the west region invests $49,000 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? Profit will

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