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.What would have been the company's absorption costing net operating income (loss)if it had produced and sold 43,000 units? Diego Company manufactures one product that

.What would have been the company's absorption costing net operating income (loss)if it had produced and sold 43,000 units?

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 company's first year of operations in which it produced 48,000 units and sold 43,000 units.

Variable costs per unit:Manufacturing:Direct materials$27Direct labor$12Variable manufacturing overhead$3Variable selling and administrative$5Fixed costs per year:Fixed manufacturing overhead$864,000Fixed selling and administrative expenses$456,000

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.

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