Diego Company manufactures one product that is sold for $70 pe r unit in two...
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Diego Company manufactures one product that is sold for $70 pe r 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 41000 units sold 36,000 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 984,808 $ 388,8ee The company sold 26,000 units in the East region and 10,000 units in the West region It determined that $150.000 of its fixed selling and administrative expense is traceable to the West region $100.000 is traceable to the East region, and the remaining $58.000 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 15. Assume the West region invests $31 in a new advertising campaign in Year 2 that increases ns unit sales by 20% if all else remains constant, what would be the profft impact of pursuing the advertising campaign? rofit will
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