The company sold 26,000 units in the East region and 10,000 units in the West region. It determined that $150,000 of its fixed selling and administrative expense is traceable to the West region, $100,000 is traceable to the East roglon, and the remaining \$\$8,000 is a common fired expense. The company will continue to incur the total amount of its foxed manufacturing overhead costs as long as it continues to produce any amount of its only product. 4. Diego is considering eliminating the West region because an internally generated report suggests the region's total gross margin in he first year of operations was $10,000 less than its traceable fixed selling and administrative expenses. Diego believes that if it drops he West region, the East region's sales will grow by 6% in Year 2 . Using the contribution approoch for anolyzing segment profitability and assuming all else remains constant in Year 2 , what would be the profit impact of dropping the West reglon in Year 2 ? sold 36,000 units. The company sold 26,000 units in the East region and 10,000 units in the West region, It determined that $150.000 of its fined selling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 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. 15. Assume the West region invests $31,000 in a new advertising campaign in Year 2 that increases its unit salos by 20%. if all else remains constant, what would be the profit impoct of pursuing the advertising campaign? Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $70 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 41,000 units and sold 36,000 units. The company sold 26,000 units in the East region and 10,000 units in the West region. It determined that $150,000 of its fixed selling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 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. fixed seling and administrative expense is traceable to the West region, $100,000 is traceable to the East region, and the remaining $58,000 is a common fixed expense. The company will continue to incur the fotal amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product. 3. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West egions