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[The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $78 per unit in two geographic regions-the
[The following information applies to the questions displayed below.) Diego Company manufactures one product that is sold for $78 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 49,000 units and sold 44,000 units. Variable costs per unit: Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed seling and administrative expenses 28 14 4 6 $ $ 686,000 510,000 The company sold 32,000 units in the East region and 12,000 units in the West region. It determined that $230,000 of its fixed selling and administrative expenses is traceable to the West region, $180,000 IS traceable to the East region, and the remaining $100,000 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. Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions. Income Statement Total Company East West
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