The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $76 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 47000 units and sold 42.000 units The company sold 32,000 units in the East region and 10.000 units in the West region It determined that $210.000 of its fixed selling and administrative expenses is traceable to the West region, $160.000 is traceable to the East region, and the remaining $105.000 is a common foxed cost. The company will continue to incur the total amount of its foved manufacturing overhead costs as long as it continues to produce any amount of its only product Required: 1. What is the unit product cost under variable costing? Diculty Medium Check my work 2. 5.00 3. What is the company's total contribution margin under variable costing? 3. 5. What is the company's total gross margin under absorption costing? Ruter Book Day 2 Check my work 6. What is the company's net operating income (loss) under absorption costing? o y Medium Check my work .00 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes losses)? merce or robowe come 6. 00 9.If the sales volumes in the East and West regions had been reversed, what would be the company's overal break even point in unit sales? Dificulty Medium Check my work 7. SO 10. What would have been the company's variable costing net operating income (loss) it had produced and sold 42,000 units? Check my work 12. If the company produces 5000 flower units than itsells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2? Law References Resources 9. Regud 5.00 points 13. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. DECO COMPANY Segmented income Statement References eBook & Resources Worksheet b e conting and Learning Objective: 05-01 Leng t e: 05-03 Reconci Explain how vonable costing on to DOO prodat costs under each Difficulty: 2 Medium Learning Objective: 05-02 Precommen using both variable and absorption costing -AP d e onfed costs and some deciso C Check my work 10. Required information 10.00 points 15. Assume the West region invests $37,000 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
