$1$

Required information

The Foundational $15($Algo$)[$LO$4-1,$ LO$4-2,$ LO$4-3,$ LO$4-4,$ LO$4-5]$

$[$The following information applies to the questions displayed below.$]$

Diego Company manufactures one product that is sold for $$78$ 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 $60,000$ units and sold $57,000$

Variable costs per unit:

Manufacturing:

Direct materials

Direct labor

Variable manufacturing overhead $128$

Variable selling and $,$ $ $12$

Fixed costs per year:

Flxed manufacturing overhead

Fixed selling and administrative expense $$1,260,000$

The company sold $42,000$ units in the East

fixed selling and administrative expense is tegion and $15,000$ units in the West region. It determined that $$340,000$ of its remaining $$24,000$ is a common fixed expe is traceable to the West region, $$290,000$ is traceable to the East region, and the manufacturing overhead costs as long as it se$.$ The company will continue to incur the total amount of its fixed

Foundational $4-3($Algo$)$

$3.$ What is the company's total contribution margin under variable costing?

Total contribution margin