The Foundational $15($Algo$)[$LO$4-1,$ LO$4-2,$ LO$4-3,$ LO$4-4,$ LO$4-5]$

IThe following infornation applies to the Quesrions displayed beiow$]$

Diego Compary manufoctures one product that a sold for $$77$ per unit in twa geugraphic regioris$-$East and West. The

following information pertains to the compary's first year of operations in which it produced $48,000$ units and sold

$43,000$ unlt:

The company sold $33,000$ units in the East recion and $10,000$ unv:s in the West reporn. It delemined that $$220,000$ of

its fixed selling and administrative expense is traczable to the West region, $$170,000$ os traceable to the East region,

and the remairing $$66000$ is a common fived expense. The compary will contioue to hcur the total amour: of its

fixed manufacturing owerhead costs $35$ long $38$ it continues to procuce ary amount of its only produrt

Foundational $4-1($Algo$)$

Required:

What is the unit product cost under variable costing?

Ilnit

prond.as ctact

What is the unit pronuct cost under aosorption cossing$?3.$ What is the comparys total contisution margin uncer variable costing?

What is the company's net operating income $($loss$)$ under warlable costing?

Noe oparating income

ner eperraing loses

What is the company's net operating income $[$oss$)$ under absorption costing?

a$.$ What is the camparry's break$-$even paint in unit sales?

b$.$ Is it above or below the actual unit sales?

Abowe

O Below

What is the company's teral groas mangin under absorption costing?

Toial grase margn

sis?

What wsuld have besn ve comporys variable costing nat sperating income $[$oss$)$ if it had produced and sold $43,000$ urita?

What would have been the companys absorpton costing net operating income $($oss$)$ if t had produced and sold $43\mathrm{.}000$ units?

If the company produces $5,000$ fewer units than it sels in its second year of operatons, wil abscrption costing net operating

income be higher or lower than varable costing ret operating incove in Year $2?$

Lower

Highe

regions