Diego Company manufactures one product that is sold for $75 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 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense Income Statement The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. 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. Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 25 $ 18 $3 $5 13. Prepare a contribution format segmented income statement that includes a Total column and col regions 3,000,000 $ 627,000 5 645,000 Total East Company $ 3.000.000 $ 2.700.000 $3,900.000 2.700.000 West 1.200.000 1.200,000 3.000.000 $ 2.700.000 $ 1.200.000 coludens for the East and West

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Chapter1: Financial Statements And Business Decisions
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Diego Company manufactures one product that is sold for $75 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 57.000 units and
sold 52,000 units.
Variable costs per unit:
Manufacturing:
Direct saterials
Direct labor
Variable manufacturing overhead
Variable selling and administrative
Fixed costs per year:
Fixed manufacturing overhead
Fixed selling and administrative expense
The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its
fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the
remaining $75,000 is a common fixed expense. 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.
Income Statement
$ 25
5:18
$3
$5
Sales
Variable expenses
Contribution margin
Traceable fred expenses
Region segment margin
Common filed expenses not traceable to regions
Net operating loss
$ 627,000
$ 645,000
13. Prepare a contribution format segmented income statement that includes a Total column and col
regions.
3900,000
Total
Company
East
West
$ 3.000.000 $ 2,700.000 $200,000
2.700.000
1.200,000
coludens for the East and West
3.900 000 $2.700.000 $ 1.200.000
$3,900.000
Transcribed Image Text:Diego Company manufactures one product that is sold for $75 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 57.000 units and sold 52,000 units. Variable costs per unit: Manufacturing: Direct saterials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense The company sold 36,000 units in the East region and 16.000 units in the West region. It determined that $310,000 of its fixed selling and administrative expense is traceable to the West region, $260,000 is traceable to the East region, and the remaining $75,000 is a common fixed expense. 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. Income Statement $ 25 5:18 $3 $5 Sales Variable expenses Contribution margin Traceable fred expenses Region segment margin Common filed expenses not traceable to regions Net operating loss $ 627,000 $ 645,000 13. Prepare a contribution format segmented income statement that includes a Total column and col regions. 3900,000 Total Company East West $ 3.000.000 $ 2,700.000 $200,000 2.700.000 1.200,000 coludens for the East and West 3.900 000 $2.700.000 $ 1.200.000 $3,900.000
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