. . ACC'IZOO 901 Fall 202 X 6 Question 14 7 F15 CH l. X * Course Hero X * Course Hero X * Course Hero * Homework Help 7 080' X + 6 C' I eztolmheducationcom l , , w ' 1 ' ,, , ' m i} * El 5 ' Gmail ' My Drive - Google... v VouTube v Maps Canvas El Other Bookmarks F15 CH 6 0 Saved Help Save & Exit Submit 1 4 [T he fo/lowing information applies to the questions displayed be/ow.] Diego Company manufactures one product that is sold for $73 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 56,000 units and PM\" 0MB sold 51,000 units, Variable costs per unit: Manufacturing: Direct materials 5 24 3-33 Direct labor 3 16 paints Variable manufacturing overhead 5 2 Variable selling and administrative S 3 Fixed costs per year: $800k Fixed manufacturing overhead s 784 , 000 Fixed selling and administrative expense 5 572 , 000 Print References The company sold 38,000 units in the East region and 13,000 units in the West region. It determined that $300,000 of its fixed selling and administrative expense is traceable to the West region, $250,000 is traceable to the East region, and the remaining $122,000 is a common xed 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 Foundational 6-14 (Algo) 14' Diego is considering eliminating the West region because an internally generated report suggests the region's total gross margin in the first year of operations was $79,000 less than its traceable fixed selling and administrative expenses, Diego believes that if it drops the West region, the East region's sales will grow by 5% in Year 2' Using the contribution approach for analyzing segment protability and assuming all else remains constant in Year 2, what would be the profit impact of dropping the West region in Year 2? M: '5' Graw