D Required information [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-the East and West regions. The following information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 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 $ 12 $ 3 $5 $ 864,000 $ 456,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 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. What is the company's break-even point in unit sales? Answer is complete but not entirely correct. eak even point 35,714 units

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5EA: Rose Company has a relevant range of production between 10,000 and 25.000 units. The following cost...
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Required information
[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-the East and West
regions. The following information pertains to the company's first year of operations in which it produced 48,000 units and
sold 43,000 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
$ 12
$ 3
$ 5
$ 864,000
$ 456,000
The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its
fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the
remaining $66,000 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.
What is the company's break-even point in unit sales?
Answer is complete but not entirely correct.
Break even point
35,714 units
Transcribed Image Text:! Required information [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-the East and West regions. The following information pertains to the company's first year of operations in which it produced 48,000 units and sold 43,000 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 $ 12 $ 3 $ 5 $ 864,000 $ 456,000 The company sold 33,000 units in the East region and 10,000 units in the West region. It determined that $220,000 of its fixed selling and administrative expense is traceable to the West region, $170,000 is traceable to the East region, and the remaining $66,000 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. What is the company's break-even point in unit sales? Answer is complete but not entirely correct. Break even point 35,714 units
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