The Diego Company manufactures and sells one product which it sells for $76 per unit in two 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: Direct material................... .............22 Direct labor........ .............12 Variable overhead.............. ................2 Variable selling expense. 5 Fixed costs per year: Fixed manufacturing overhead.......................$800,000 Fixed selling and administration expense......$496,000 6. What is the company's net operating income under absorption costing? 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes? What is the cause of this difference? 8. What is the company's break-even point in unit sales? Is it above or below the actual unit sales? Compare the break-even point in unit sales to your answer for question 6 and comment. 9. If the sales volumes in the East and West regions had been reversed, what would be the com- pany's overall break-even point in unit sales? 10. What would have been the company's variable costing net operating income if it had produced and sold 35,000 units? You do not need to perform any calculations to answer this