Question: please help me answer the following questions below i attached...
Please help me answer the following questions below. I attached the photo of the question and wrote the questions out as well. Thank you for any help!
Diego Company manufactures one product that is sold for $76 per unit into geographic regions the east and west regions. The following information pertains to the companies first year of operations in which it produce 47,000 units installed 42,000 units. The company sold 32,000 units in the East region and 10,000 units in the West region. It determined that $210,000 of its fix selling in in a minute straight of expenses is traceable to the West region, 160,000 is traceable to the east region. In the remaining 105 thousand comments fix expense. The company will continue to encourage total amount of fixed manufacturing overhead cost as long as it continues to reduce any amount of its only product.
1.What is the unit product cost under variable costing?
2. What is the unit product cost under absorption costing?
3. What is the company’s total contribution margin under variable costing?
4. What is the company’s net operating income (loss) under variable costing?
5. What is the company’s total gross margin under absorption costing?
6. What is the company’s net operating income (loss) under absorption costing?
7. What is the amount of the difference between the variable costing and absorption costing net operating income (losses)?
8. What is the company’s break-even point in unit sales?
9. If the sales volume in the east and west regions had been reversed, what would be the company’s overall break even point in unit sales?
10. What would have been the companies variable costing net operating income (loss) if it had produced and sold 42,000 units? You do not need to perform any calculation to answer the question.
11. What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 42,000 units? You do not need to perform any calculations to answer this question.
12. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in year 2?
13. Prepare a contribution format segmented income statement that includes a total column and columns for East and West regions. (*** photo of the format is in photo below)
14. Diego is considering eliminating the West region because an internally Generated reports suggest the regions total gross margin in the first year of operations was $40,000 less then it’s traceable excelling in administrative expenses. Diego believes that if it drops the West region, the East region sales will grow by 5% in year 2. Using the contribution approach for analyzing segment profitability in assuming all else remains constant and your two, what would be the profit in impact dropping the West region in year 2? Fill in the answer: profit will (increase/decrease) by: ( )
15. assume the west region and Bess $37,000 in a new advertising campaign in year 2 that increases its unit sales by 20%. If all else remains constant, what would be the profit impact of pursuing the advertising campaign? Please answer the question in the following format: profit will (increase/decrease) by: ( )
****For question 13.