If the sales volumes in the East and West regions had beenreversed, what would be the companyâs overall break-even point inunit sales?
The following information applies to the questions displayedbelow.]
Diego Company manufactures one product that is sold for $70 perunit in two geographic regionsâthe East and West regions. Thefollowing information pertains to the companyâs first year ofoperations in which it produced 53,000 units and sold 48,000units.
Variable costs per unit: Manufacturing: Directmaterials $ 21 Direct labor $ 10 Variablemanufacturing overhead $ 2 Variable sellingand administrative $ 4 Fixed costs per year: Fixed manufacturing overhead $ 1,060,000 Fixed selling and administrativeexpenses $ 557,000
The company sold 36,000 units in the East region and 12,000units in the West region. It determined that $270,000 of its fixedselling and administrative expenses is traceable to the Westregion, $220,000 is traceable to the East region, and the remaining$67,000 is a common fixed cost. The company will continue to incurthe total amount of its fixed manufacturing overhead costs as longas it continues to produce any amount of its only product.
question related to this summary is above
If the sales volumes in the East and West regions had beenreversed, what would be the companyâs overall break-even point inunit sales?
The following information applies to the questions displayedbelow.]
Diego Company manufactures one product that is sold for $70 perunit in two geographic regionsâthe East and West regions. Thefollowing information pertains to the companyâs first year ofoperations in which it produced 53,000 units and sold 48,000units. |
Variable costs per unit: | ||
Manufacturing: | ||
Directmaterials | $ | 21 |
Direct labor | $ | 10 |
Variablemanufacturing overhead | $ | 2 |
Variable sellingand administrative | $ | 4 |
Fixed costs per year: | ||
Fixed manufacturing overhead | $ | 1,060,000 |
Fixed selling and administrativeexpenses | $ | 557,000 |
The company sold 36,000 units in the East region and 12,000units in the West region. It determined that $270,000 of its fixedselling and administrative expenses is traceable to the Westregion, $220,000 is traceable to the East region, and the remaining$67,000 is a common fixed cost. The company will continue to incurthe total amount of its fixed manufacturing overhead costs as longas it continues to produce any amount of its only product. question related to this summary is above |