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[The following information applies to the questions displayed below. Diego Company manufactures one product that is sold for $71 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 $71 per unit in two geographic regions-the East and West regions. The following Information pertalns to the company's first year of operations in which it produced 42,000 units and sold 37,000 units. Variable costs per unit: Manufacturing Direct materials Direct labor Varlable manufacturing overhead Varlable selling and administrative 21 12 3 Flxed costs per year: Flxed manufacturing overhead Fixed selling and administrative expenses $840,000 $ 330,000 The company sold 27,000 units In the East reglon and 10,000 units In the West reglon. It determined that S160,000 of its fixed selling and administrative expenses is traceable to the West region, $110,000 Is traceable to the East region, and the remaining $60,000 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
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