The Foundational 15 (Static) [LO7-1, LO7-2, LO7-3, LO7-4, LO7-5] [The following information applies to the questions displayed below] Diego Company manufactures one product that is sold for $80 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 40,000 units and sold 35,000 units. The compary sold 25,000 units in the East region and 10,000 units in the West region. It determined that $250,000 of its foxed selling and administrotive expense is traceable to the West region, $150.000 is traceoble to the East region, and the remoining $96.000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing ovetheed costs as long as it continues to produce any amount of itsonly product. Foundational 7.14 (Static) Diego is considering eliminoting the West region because an intemally generated report suggests the region's total gross margin in the first year of operations was $50,000 less than its traceable fored selling and administrative expenses. Diego believes that if it drops the West region, the East region's sales wil grow by 5% in Year 2 . Using the contribution approach for anatyzing segment profitability and assuming all else remalns constant in Year 2 ; what would be the profit impact of dropping the West region in Year 2