Question

Required information [The following information applies to the questions displayed below) Diego Company manufactures one product that is sold for $71 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 42,000 units and sold 37,000 units. Variable costs per uniti Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year! Pixed manufacturing overhead Fixed selling and administrative expense 21 12 3 5 $ 840,000 $ 330,000 The company sold 27,000 units in the East region and 10,000 units in the West region. It determined that $160,000 of its fixed selling and administrative expense is traceable to the West region, $110,000 is traceable to the East region, and the remaining $60,000 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. 9. If the sales volumes in the East and West regions had been reversed, what Ivould be the company's overall break-even point in unit sales? Break even point units

Answer 1

Selling price per unit	71
Less: Variable expense
Direct materials	21
Direct labor	12
Variable manufacturing overhead	3
Variable selling and administrative	5
Total Variable expense	41
Contribution margin per unit	30
9
Total fixed costs	1170000	=840000+330000
/ Contribution margin per unit	30
Break even point	39000	units