[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 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 $ 27 $ 10 $2 $3 $ 1,298,000 $662,000 The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 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. 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit sales?
[The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000 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 $ 27 $ 10 $2 $3 $ 1,298,000 $662,000 The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the remaining $52,000 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. 9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit sales?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![15
es
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East and West. The
following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000
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
$27
$ 10
$2
$3
The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its
fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the
remaining $52,000 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.
Break even point
$ 1,298,000
$ 662,000
9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit
sales?
units](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F95f43876-f112-44e5-b0ac-44c6f35bf50e%2F3852706c-8656-4f9c-831f-dda4997a4fed%2Fodf1ts7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:15
es
[The following information applies to the questions displayed below.]
Diego Company manufactures one product that is sold for $77 per unit in two geographic regions-East and West. The
following information pertains to the company's first year of operations in which it produced 59,000 units and sold 54,000
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
$27
$ 10
$2
$3
The company sold 41,000 units in the East region and 13,000 units in the West region. It determined that $330,000 of its
fixed selling and administrative expense is traceable to the West region, $280,000 is traceable to the East region, and the
remaining $52,000 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.
Break even point
$ 1,298,000
$ 662,000
9. If the sales volumes in the East and West regions had been reversed, what would be the company's overall break-even point in unit
sales?
units
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