Required information

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

Skip to question

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

Diego Company manufactures one product that is sold for $$75$ per unit in two geographic regions$$East and West. The following information pertains to the company$$s first year of operations in which it produced $46,000$ units and sold $42,000$ units.

Variable costs per unit:

Manufacturing:

Direct materials $ $25$

Direct labor $ $20$

Variable manufacturing overhead $ $2$

Variable selling and administrative $ $4$

Fixed costs per year:

Fixed manufacturing overhead $ $644,000$

Fixed selling and administrative expense $ $388,000$

The company sold $31,000$ units in the East region and $11,000$ units in the West region. It determined that $$200,000$ of its fixed selling and administrative expense is traceable to the West region, $$150,000$ is traceable to the East region, and the remaining $$38,000$ 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.

Foundational $4-13($Algo$)$

$13.$ Prepare a contribution format segmented income statement that includes a Total column and columns for the East and West regions.Answer is not complete.

Income Statement

Total

Company

East West

Salesselected answer correct $$3,150,000$selected answer correct $$2,325,000$selected answer correct $$825,000$selected answer correct

Variable expensesselected answer correct $2,142,000$selected answer correct $1,581,000$selected answer correct $561,000$selected answer correct

Contribution marginselected answer correct $1,008,000744,000264,000$

Traceable fixed expensesselected answer correct $388,000$selected answer incorrect $178,000$selected answer incorrect $210,000$selected answer incorrect

Region segment marginselected answer correct $620,000$ $$566,000$ $$54,000$

not attempted not attempted

Net operating lossselected answer correct $$620,000$