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Requlred Information

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Diego Company manufactures one product that is sold for $$80$ per unit in two geographic reglons$-$the East and West regions. The following information pertains to the company's first year of operations in which it produced $40,000$ units and sold $35,000$ units.

The company sold $25,000$ units In the East reglon and $10,000$ units in the West region. It determined that $$250,000$ of its fixed selling and administrative expense Is traceable to the West region, $$150,000$ is traceable to the East region, and the remaining $$96,000$ 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.

$9.$ If the sales volumes In the East and West reglons had been reversed, what would be the company's overall break$-$even point in unit sales?

Break even point

units

$10$

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Required Information

Part $10$ of $15$

$6\mathrm{.}66$ points

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References

$[$The following information applies to the questions displayed below.$]$

Diego Company manufactures one product that is sold for $$80$ 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 $40,000$ units and sold $35,000$ units.

Variable costs per unit:

Manufacturing:

Direct materials $$24$

Direct labor $ $$14$

Variable manufacturing overhead $$2$

Variable selling and administrative

$$4$

Fixed costs per year:

Fixed manufacturing overhead $ $$80,000$

Fixed selling and administrative expense

$$496,030$

The company sold $25,000$ units In the East region and $10,000$ units in the West region. It determined that $$250,000$ of its fixed selling and administrative expense is traceable to the West region, $$150,000$ is traceable to the East region, and the remaining $$96,000$ 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 varlable costing net operating income $($loss$)$ If It had produced and sold $35,000$ units? You do not need to perform any calculations to answer this question.