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Diego Company manufactures one product that is sold for $77 per unit in two geographic regionsthe East and West regions. The following information pertains to the companys first year of operations in which it produced 48,000 units and sold 43,000 units.

The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expenses is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 is a common fixed cost. 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. 13.

Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 27 12 3 5 Fixed costs per year: $ 864,000 Fixed selling and administrative expenses456,000 Fixed manufacturing overhead Income Statement Total Company East West Sales ariable expenses Contribution margin Traceable fixed expenses Region segment marginbeo Common fixed expenses not traceable to regions Net operating loss